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.
About nine million people with student loans missed their first payment after the recent pandemic pause, according to data.
Spending this holiday season is set to significantly rise, according to an economic survey from CNBC.
Google settled an antitrust lawsuit, Tesla is reportedly raising pay, a group is suing Utah over its social media policies for kids and the founder of Nikola was sentenced to prison.
The White House is lending its support to an auto industry effort to standardize Tesla’s electric vehicle charging plugs for all EVs in the United States.
Some of America’s biggest retailers are working to increase their shipping speeds to please shoppers expecting faster and faster deliveries.
A group representing several big tech companies is suing Utah over state laws about children's social media use.
Google has agreed to pay $700 million to settle an anti-trust settlement.
Stocks were up after the closing bell as Wall Street continued to pin their hopes on rate cuts after last week's comments from the Fed.
Cheddar News' Need2Know is brought to you by Securitize, which helps unlock broader access to alternative investments in private businesses, funds, and other alternative assets. The private credit boom is here and the Hamilton Lane Senior Credit Opportunities Fund has tripled in assets under management in just six months from November 2022 through April this year. Visit Securitize.io to learn more.
Google has agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store — the same issue that went to trial in another case that could result in even bigger changes.
