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“I have been studying gaming consumers and gaming companies for 25 years and I have followed Playtika for many years, being close to the Israeli gaming business,” said Mike Vorhaus, CEO of Vorhaus Advisors, in an email. Playtika has more than 35 million monthly active users. Its value is much higher than in 2016, when a consortium led by China’s Giant Investment Group (through the subsidiary Alpha Frontier) bought Playtika for $4.4 billion. Herzliya, Israel-based Playtika will trade under the symbol PLTK. That gives the money a lot of cash to pursue acquisitions, and Abrahams expects to refinance at better interest rates in the coming months.

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He noted that the company has $400 million or so on its balance sheet, plus the $499 million it raised today, plus $550 million in a line of credit. “The amount of debt is relatively nominal,” he said. The current leverage is 2.4, where debt is 2.4 times the amount of cash flow. Of more concern may be the fact that Playtika has a Chinese owner at a time when U.S.-China relations are sour, and that could spill over into a trade war.Ībrahams said the company looks at debt relative to cash flow. Sources I’ve interviewed say they aren’t worried about that, as Playtika’s cash flow is more than enough to pay down such debt. The company’s social casino games, including Slotomania and other titles, have generated $2.3 billion in revenues in the past 12 months, but the Israeli company also has $2.3 billion in debt. Market insight and analytics firm App Annie estimates mobile gaming will grow 20% in 2021 to $120 billion. In an interview with VentureBeat, Playtika president and chief financial officer Craig Abrahams said the team had to ring the opening bell virtually.īut gaming has been on a roll. Join gaming leaders live this October 25-26 in San Francisco to examine the next big opportunities within the gaming industry. Since gaming is a very small part of the overall stock market, it is vulnerable to swings of the larger market. Other companies have lined up to do IPOs, but the market window is unpredictable. The big ones were Unity Software, Skillz, and Kakao Games. When it came to public markets, 2020 was an extraordinary year, with 18 video game initial public offerings (IPOs) raising $2.8 billion, according to an analysis by InvestGame, which studies market transactions in the game industry. (Update: Playtika’s stock price closed at $31.62 a share, giving the company an enterprise valuation of $14.5 billion). Playtika’s trading opened at $35 a share and it is currently at $33.51 a share. The IPO is the largest in Israeli history, and the value puts it above American mobile game publisher Zynga, which is worth $10.7 billion.

About $499 million of the amount goes to the company. In the offering, Playtika’s owner and the company sold stock valued at $1.88 billion, with Playtika offer 18.5 million shares and its owner, Shi Yuzhu (owner of Giant), selling 50.9 million shares.

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