Playtika Rallies on Rumored Interest of Private Equity Firms
Shares of nomadic games developer Playtika (NASDAQ: PLTK) surged Thursday. That’s followers a write up indicating at to the lowest degree 2 common soldier equity firms are considering a takeover of the gaming company.
Dealreporter reported Th that Advent International and CVC Capital Partners are kicking the tires on the Israeli gaming firm. That clause surfaced most deuce months after another suggested unidentified buck private equity shops expressed initial interest inwards Playtika.
Investors liked the news. After Playtika caudex was halted before inwards Thursday’s session for word pending, the shares are up 8.21% on loudness that’s nearly two-bagger the day-to-day intermediate inward belatedly trading. That run has the gunstock flirting with a faithful at or above $11 for the firstly clip since tardily April.
Formerly a social unit of Caesars Entertainment, Playtika is the developer of pop societal gambling casino games, including Bingo Blitz, Caesars Slots, Slotomania, and World Series of Poker (WSOP) Social, among others.
Playtika Long Looking for a Deal
Playtika’s involvement inward a possible investiture from an outside chemical group or outright cut-rate sale isn’t a secret. The company announced a strategic review, which could include a sale, inwards February 2022.
The acquisition prices Advent and CVC are considering weren’t mentioned. Playtika has a securities industry capitalization of $3.96 billion, and Caesars sold it to a grouping of Chinese investors inward 2016 for $4.4 billion. Today, that group, Playtika Holding UK II Limited (PHUK II), is the company’s largest shareholder.
That implies PHUK II holds considerable sway at Playtika, and it mightiness not signalize sour on a dealings that values the roving gaming accompany at to a lesser extent than $4.4 billion.
Previously, technology buyout monetary fund Joffre Washington attempted to have a controlling involvement in Playtika. But those plans were ultimately scrapped after Joffre Managing Partner and cofounder Henry James Lu resigned from the Playtika board. On his way of life come out the door, Lu lambasted the Playtika board for a lack of independence, claiming the directors were controlled by management.
Attraction to Playtika Understandable
Whether it’s a private equity unfaltering or another gaming company, the purported interest inward Playtika is understandable, because the fast(a) is proficient at in-app sales. Playtika’s games are usually free to download and play. But game-play canful live enhanced via revenue-generating, in-app purchases.
Some consumers decry that strategy because it requires outlays of tangible money for virtual chips or currencies that have no more time value outside of the game. That might not be of worry to Playtika suitors.
Speaking of suitors, CVC’s interest group in Playtika is sensible because the investment stiff already has some gaming exposure via Gaming1 and European sportsbook monster Tipico.
“Gaming1 is a leader in the Belgian gaming securities industry and is represent in Nina from Carolina countries around the world, including Portugal, France, and the United States with their spliff jeopardize Gamewise founded with the American goliath Delaware River North,” according to CVC.
Advent International’s electric current investment portfolio doesn’t feature unmediated gaming exposure. But the loyal holds stakes inward a variety of well-known consumer and technology brands, including Coffee Bean & Tea Leaf, Lululemon, and Transunion, among others.
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