Playtika to Acquire Tel Aviv Gaming Startup SuperPlay for Up to $1.95 Billion

In a significant move within the gaming industry, Israel’s Playtika has announced its agreement to acquire Tel Aviv-based gaming startup SuperPlay. The deal, valued at up to $1.95 billion, includes an upfront payment of $700 million and additional contingent considerations based on SuperPlay’s financial performance over the next three years. This acquisition is expected to bolster Playtika’s position in the mobile gaming market and expand its portfolio with SuperPlay’s popular titles, Dice Dreams and Domino Dreams.

Playtika’s acquisition of SuperPlay is a strategic move aimed at strengthening its leadership in the mobile gaming sector. SuperPlay, founded in 2019 by former Playtika employees, has quickly risen to prominence with its successful games Dice Dreams and Domino Dreams. These games have garnered a combined 1.7 million average daily active users as of August 2024, showcasing their popularity and growth potential.

The acquisition is expected to provide Playtika with a significant growth opportunity by adding SuperPlay’s proven talent and successful game titles to its portfolio. Playtika’s CEO, Robert Antokol, emphasized that the acquisition aligns with the company’s strategy to drive growth with scaled titles and unlock new opportunities in the gaming industry. By integrating SuperPlay’s expertise and innovative approach, Playtika aims to enhance its ability to deliver exceptional gaming experiences to players worldwide.

This move also highlights Playtika’s commitment to expanding its market presence and staying competitive in the rapidly evolving gaming landscape. With the addition of SuperPlay, Playtika is poised to further solidify its position as a leader in the mobile gaming industry.

Financial and Operational Details

The financial structure of the deal includes an upfront payment of $700 million, with additional contingent considerations of up to $1.25 billion based on SuperPlay’s financial performance over the next three years. This earnout structure ensures that the acquisition is performance-driven, rewarding SuperPlay for achieving specific financial targets while mitigating potential risks for Playtika.

SuperPlay’s founders, Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, will continue to lead the company as an independent studio within Playtika. This arrangement allows SuperPlay to maintain its creative autonomy while benefiting from Playtika’s resources and support. The integration of SuperPlay into Playtika’s operations is expected to be seamless, leveraging the synergies between the two companies to drive innovation and growth.

The transaction is anticipated to close in the fourth quarter of 2024, subject to regulatory approvals. Playtika’s Nasdaq-listed shares saw a slight increase following the announcement, reflecting investor confidence in the strategic value of the acquisition.

Future Prospects and Industry Impact

The acquisition of SuperPlay is set to have a significant impact on the gaming industry, particularly in the mobile gaming segment. Playtika’s enhanced portfolio, now including SuperPlay’s popular titles, positions the company for continued growth and success. The combined expertise and resources of both companies are expected to drive the development of new and innovative games, further engaging and expanding their player base.

SuperPlay’s investors, including NFX, 83North, VGames, General Catalyst, Key1 Capital, O.G. Venture Partners, and Gal Ventures, have expressed their support for the acquisition, recognizing the potential for increased value and growth. The deal also underscores the dynamic nature of the gaming industry, where strategic acquisitions play a crucial role in shaping the competitive landscape.

As Playtika and SuperPlay move forward together, the gaming community can anticipate exciting developments and enhanced gaming experiences. This acquisition not only strengthens Playtika’s market position but also sets the stage for future innovations and successes in the mobile gaming industry.

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