Update: A new one came after the news of the purchase was announced a while ago. Contrary to rumors, Joffre Capital bought a minority stake in Playtika. The transaction was executed at $21 per share, as previously stated.
Joffre Capital bought 25.7% of Playtika. The total transaction amount was announced as $2.2 billion (106.1 million shares).
Original: The majority stakes of Israeli mobile game company Playtika are sold to private equity firm Joffre Capital.
According to Axios, Joffre Capital will pay $21 per share from Platika. The sale is being made by a Chinese investment group that owns a stake in Playtika. The total transaction volume is estimated to be around $8.7 billion.
Right after Axios published the news, Playtika’s share values increased by 32%. The company has experienced significant depreciation since November 2021, with its value falling to $5.6 billion. This stock sale gave the company some relief.
Playtika is famous for its mobile casino games. The company’s portfolio includes the famous mobile casino games House of Fun Slots Casino, Poker Heat™ Texas Holdem Poker, and Vegas Downtown Slots & Words.
According to Statista’s data, the company generated approximately $2.59 billion in revenue in 2021. This represents a 9% increase compared to $2.37 billion in revenue in 2020.
There was no statement from either company regarding the issue. Playtika is one of the largest mobile game companies in Israel. This acquisition could bring new activity to the Israeli mobile game industry. Considering that Playtika closed three of its studios at the beginning of June and laid off 250 people, such activity can add life to the studio.
We will share it with you when an official statement comes from the companies.