Roblox, a gaming platform last valued at $29.5 billion in the private sector, is going public Wednesday on the New York Stock Exchange in another highly-anticipated debut for the booming online gaming space.
The stock was priced at $45, opened at $64.50, and was trading above $70 in the early going.
The company's proprietary game engine gives users the ability to create their own properties without learning to code. It then sells those user-made games on its popular app and shares 30 percent of the revenue from virtual purchases with creators.
Roblox paid $328.7 million to developers in 2020, up almost 200 percent from the year prior. Notably, more than half of the company's users are under the age of 13.
Craig Donato, chief business officer at the company, told Cheddar that the model thrives on the diversity of gaming experiences created by the global user base.
"You can think of Roblox as a universe made up of millions of immersive experiences that people can enjoy with their friends," he said. "So, you can be a star in a fashion show. You can DJ a beach party. You can snowboard down a mountain or build your own amusement park."
He added that eight million people around the world are contributing content to Roblox.
The way the model works is that Roblox sells players in-game currency called Robux, which players can then use to make in-game virtual purchases such as new skins for their avatars or other virtual features With the introduction of Premium Payouts in 2019, more than 1,250 developers earned at least $10,000 in Robux for their work. (The digital currency can be converted into cash.) The company anticipates more hefty payouts going forward.
After accounting for costs, Donato said the revenue-split with creators is closer to 50-50.
He noted that while the user base is still overwhelmingly young, older teenagers are its fastest-growing segment.
"Our players are very much growing up with us," he said.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
