Mobile game developer Playtika is set to acquire Israeli gaming company SuperPlay in a deal valued at up to $1.95 billion. The acquisition will consolidate popular mobile games such as Bingo Blitz and Dice Dreams under Playtika’s portfolio. SuperPlay reported sales revenue of $265 million in Q2 2024.
Dice Dreams is a Coin Looter game. Domino Dreams is a popular Board game. In 2024, both Dice Dreams and Domino Dreams have grown rapidly, boasting a combined 1.7 million Average Daily Active Users as of August.
The deal includes an upfront payment of $700 million, with the potential for an additional $1.25 billion contingent on SuperPlay meeting certain financial targets over the next three years.
Playtika expects the transaction to be finalized in the fourth quarter of this year, and plans to provide updated financial guidance during its third-quarter earnings call.
The acquisition represents a significant move in the mobile gaming industry, with both companies headquartered in Israel, and reflects Playtika’s ongoing strategy to expand its gaming portfolio through acquisitions.
Playtika’s revenue fell 3.7 percent sequentially and 2.5 percent year over year to to $627 million during the second-quarter of 2024. Playtika’s profit increased 63.4 percent sequentially and 14.4 percent year over year to $86.6 million.
Playtika says 9 out of the top 11 titles represent acquired titles. Playtika has achieved attractive post-acquisition purchase multiples in past deals.
Playtika acquired Bingo Blitz (in 2012), Slotomania (in 2012), World Series of Poker (in 2013), Aesars Slots (in 2013), House of Fun (in 2014), June Journey (in 2018), Solitaire Grand Harvest (in 2019), Best Fiends (in 2019), Redecor (in 2021), Animals & Coins (in 2023), Governor of Poker 3 (in 2023).
SuperPlay, an expert game makers, is founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory. Gilad Almog and Eyal Netzer will continue to lead SuperPlay as its own studio within Playtika.
Playtika faces drop in paying users and revenue
Playtika reported a drop in both daily paying users and revenue across several of its major game segments.
Average Daily Paying Users fell to 298,000, representing a 3.6 percent sequential decline and a 2.9 percent drop year over year.
Payer Conversion saw a slight improvement, reaching 3.7 percent, up from 3.5 percent in Q1 and 3.6 percent in Q2 2023, indicating a higher percentage of users choosing to spend on in-game purchases.
Playtika’s casual games segment saw revenues fall by 4.3 percent compared to the previous quarter and 1.7 percent year over year. The company’s social casino-themed games also faced a dip, with revenue down 2.9 percent sequentially and 3.4 percent year over year.
Bingo Blitz, one of Playtika’s flagship games, posted revenue of $155.7 million, reflecting a 1.2 percent decline sequentially and a slight 0.4 percent drop year over year.
June’s Journey saw some bright spots, with revenue at $74.6 million, down 2.6 percent sequentially but up 1.9 percent from the previous year.
Meanwhile, Slotomania, a long-time performer for the company, recorded a revenue of $133.8 million, which is down 1.2 percent sequentially and 7.5 percent year over year.
Baburajan Kizhakedath
