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.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
