Playtika Plans $1.2 Billion M&A Strategy for Next Three Years

Playtika’s bigwigs scrapped the buyer hunt and are now all about M&A. CFO Craig Abrahams disclosed Playtika’s intention to finalize 1-2 strategic deals annually.

Playtika embraced a new capital allocation strategy, employing a multi-faceted approach to enhance shareholder value. With plans to initiate quarterly dividends and earmark between $600 million and $1.2 billion for M&As over the next three years, the company is poised for strategic growth.

Largest M&A Gaming Deals in the Last Several Years

In recent years, significant mobile gaming mergers and acquisitions (M&A) have occurred, such as Microsoft’s $68.7 billion purchase of Activision Blizzard, Take-Two Interactive’s $12.7 billion acquisition of Zynga, and Savvy Games Group’s $4.9 billion takeover of Scopely.

While most mobile gaming M&A deals from January 2021 to February 2024 involved large publishers acquiring smaller developers, activity slowed in 2022 and 2023 due to post-Covid adjustments and economic factors like inflation.

However, GlobalData anticipates a resurgence in M&A activity in the mobile gaming sector in 2024 and beyond, with companies like Savvy Games Group, Sony, and Tencent likely to strengthen their portfolios through acquisitions, while others such as Embracer Group and ByteDance may divest some studios to manage losses and regulatory pressures.

Sources: mobilegamer.biz