In today's online casino news, it has come to our attention that Playtika will be acquired by Chinese investors for $4.4 billion in cash.
Playtika is a developer of mobile social casino games and is owned by Caesars Interactive Entertainment. The company's other valuable assets, such as the World Series of Poker, were not included in this deal. Playtika was acquired in 2011 when it had just ten employees.
The consortium of investors all answer to Giant Interactive, the owners of ZT Online, which happens to be one of the most played MMO (massively multiplayer online) fantasy role-playing games in China.
It is speculated that Caesars Interactive Entertainment has been planning to sell Playtika since May and that it received multiple offers in the process. Before the sale goes through, however, the company is going to put its main casino unit – Caesars Entertainment Operating Co – through Chapter 11 bankruptcy proceedings. This will be done in order to solve the issue of $18 billion in debt they have accumulated.
The new financial resources are likely to fuel the group's further development. Part of the selling process also requires Caesars Acquisition Company to be merged with Caesars Entertainment, and this will create some additional breathing room as far as finances are concerned.
Since the company was acquired in 2011, it has become the market-leading social casino games developer, with more than 20 million monthly users, as well as 250 million app installs and a wide range of games, such as progressive jackpots. Playtika brings in about 70% of the company's total revenue. Currently, they have 1,300 employees placed in 12 offices around the world.
CEO Mitch Garber said that growing Playtika into what it represents today was a very rewarding experience. He views the company as highly profitable and is proud of the growing numbers of installs and new users that are signing up on a daily basis.