Caesars Interactive Entertainment agrees a sale of it’s Israeli Mobile and Social Casino, Playtika Ltd., for $4.4 Billion to Chinese investors led by Shanghai Giant Network Technology Co, one of China’s largest online gaming companies. Though gambling is illegal in China, smartphone based games are big business and Chinese investors are jumping at the chance of getting a foothold in the fastest growing segment of the Gaming industry by offering an all cash bid to acquire Playtika.
Started in 2010, Playtika Ltd. is the world’s largest social casino games company with nearly double the market share of IGT, it’s closest competitor. Playtika makes free-to-play hits such as “Bingo Blitz” and “Slotomania” which rely on virtual currencies which cannot be exchanged for real money.
Robert Antokol, cofounder and CEO of Playtika, said in a statement, “This transaction is a testament to Playtika’s unique culture and the innovative spirit of our employees who for the past six years have consistently designed, produced and operated some of the most compelling, immersive and creative social games in the world.”
“We are incredibly excited by the commercial opportunities the Consortium will make available to us, particularly in its ability to provide us access to large and rapidly growing emerging markets. This is an amazing milestone for all Playtikans and we truly value how unique this opportunity is to continue executing our vision with such a strong partner.”
The Chinese consortium will allow Playtika to continue to operate independently. The all-cash deal is expected to close by the end of the year.
Caesars Entertainment Corp. sky rocketed as much as 11 percent after agreeing over the weekend to sell casino-style online games unit Playtika Ltd. for $4.4 billion to Chinese investors led by Shanghai Giant Network Technology Co.
