Mobile gaming platform Playtika ($PLTK) began trading on the Nasdaq Friday in an initial public offering valuing the company at $1.88 billion, potentially making it the biggest IPO of the year so far.
The Israeli-based platform hosts a mix of casual and casino-themed games, with nine out of the top 100 games on Apple and Google Play, according to CFO Craig Abrahams.
In the lead-up to the public offering, the company benefited from a surge of interest in mobile gaming during the pandemic.
"During stay-at-home orders, people were looking for alternate means of entertainment during these tough times, and mobile gaming was one of the great places that they went for entertainment," Abrahams told Cheddar.
The company makes 97 percent of its revenue from in-app purchases, such as extra features bought within the game to extend or expand players' experience, and 3 percent from in-game advertising.
Funding from the IPO will support an ongoing growth strategy centered around acquisitions.
"There's a lot of opportunities in front of us," Abrahams said. "M&A has been a core part of our growth strategy."
He added that Playtika has made seven studio acquisitions over the last eight years and that the company is in a strong position to make another one in the near-term.
"We've always generated a tremendous amount of cash," he said.
Playtika is the first in what could be a full pipeline of game developers going public this year. Kids gaming site Roblox is planning a direct listing early in 2021, and mobile gaming conglomerate AppLovin is currently exploring a public option.
Updated on January 15, 2021, at 12:28 p.m. ET to reflect that trading was underway.
BiggerPockets Money podcast is now available on Cheddar Wednesdays at 10am ET! Mindy Jensen shares how her podcast is helping people gain financial freedom.
The social video platform's future remains in doubt, as players scramble to profit from the chaos. Plus: Big oil gets bigger, DOGE downsizes, and tariffs!
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
