Following the egg-on-its-face acquisition of Rovio that never was, Israeli mobile games and interactive entertainment house Playtika has signed a definitive agreement to acquire the Euronext-listed digital advertising and entertainment media platform Azerion's Youda Games oortfolio for an initial cash consideration of €81.3 million. Including an earnout based on the performance of the acquired business, the total consideration could amount to a deal worth up to a maximum of €150 million.
An interesting move for certain, as was noted when the Rovio acquisition fell through, Playtika CFO and President Craig Abrahams announced during an earnings call a strategic shift in strategy as far as new games development was concerned, noting that the company would only start launching new titles again only when the ROI becomes “economically valuable” again.
In conjunction with the Azerion Youda Games portfolio acquisition, Abrahams commented, “The acquisition of Youda Games’ card game portfolio, with its strong IP, is in line with Playtika’s strategic incremental growth approach of leveraging our unrivaled LiveOps expertise and proprietary technology stack to optimize and scale games, strengthening our market position. We believe this acquisition will be accretive to our financial performance and is part of our strategy to acquire proven franchises where we can add value.”
The transaction is expected to complete by the end of the third quarter 2023 subject to the satisfaction of customary closing conditions.