Problems at Playtika (PLTK)
Problems at Playtika (PLTK)
Problems at Playtika (PLTK)
Playtika Holding Corp (NASDAQ: PLTK — $8.54 billion) is a China-backed Israel-based app developer whose “mission is to entertain the world through infinite ways to play.” Investors believe Playtika has a healthy user base and a strong playbook for acquiring popular games and improving monetization. The Bear Cave doesn’t.
Founded in Israel in 2010, Playtika was sold to Caesars Interactive Entertainment in 2011, resold to a Chinese consortium led by Giant Interactive Group (SHE: 002558 — CNY23.2 billion) and Jack Ma for $4 billion in 2016, and then taken public in January 2021 at an $11.4 billion valuation. In 2020, Playtika earned 97% of its revenue from nine app-based games: Slotomania, Bingo Blitz, House of Fun, Caesars Slots (licensed), World Series of Poker (licensed), Best Fiends, June’s Journey, Solitaire Grand Harvest, and Board Kings. Playtika derives 70% of its revenue from the U.S. and 15% from Europe.
Mobile app games face a tradeoff between user…