Caesars Entertainment to Divest Playtika for $4.4 Billion
Caesar Entertainment Interactive (CIE) has reached an agreement to divest its social gaming division, Playtika, for an impressive $4.4 billion. The acquiring entity? A syndicate supported by a branch of Shanghai Giant Network Technology, a prominent force in the online gaming realm. This transaction follows rumors of CIE investigating a sale for approximately $4 billion. Significant attention arose from entities like Giant and others, as per reports from publications such as the Wall Street Journal and Bloomberg. The prosperity of Playtika, particularly its mobile game offerings, served as a major attraction for prospective purchasers. During the initial quarter of 2016 alone, CIE experienced a 29% surge in its net revenue (reaching $228 million), largely attributed to the expanding user base engaging in their social and mobile games on a monthly basis. It is noteworthy that CIE will retain ownership of its World Series of Poker trademark and its real-money online gaming operations – these components are excluded from this agreement. This entire process commenced back in 2011 when Harrah’s (which subsequently transformed into Caesars Entertainment) procured a controlling interest in Playtika and progressively acquired the remaining shares. Presently, with the anticipation of the deal’s finalization later in 2016, Playtika will persist in its operations from its headquarters situated in Israel, albeit under new management.
Playtika has achieved remarkable feats,” commented Robert Antokol, its originator and head. He ascribed the company’s triumphs to its gifted personnel, robust workplace atmosphere, advanced data analytics skills, and distinct strategy for obtaining and expanding games.
Mitch Garber, Chief Executive of Caesars Interactive Entertainment (CIE), has participated in Playtika’s path since CIE purchased the company in 2011. He contemplated observing Playtika evolve from a modest startup with a few workers to a worldwide frontrunner in the gaming sector. “Currently,” he declared, “Playtika is a highly lucrative and swiftly expanding enterprise with a collection of successful games, countless daily players, and over 1300 staff members.” Garber commended Antokol as a visionary leader in the Israeli business realm, recognizing not only the impressive organization he constructed but also the exceptional and encouraging company culture he nurtured.
Caesars Entertainment will be unveiling its second-quarter fiscal outcomes for 2016 on Tuesday.
