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Playtika acquires 80% stake in Reworks; Street says Buy

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Gaming company Playtika Holding (PLTK) revealed that it has acquired about 80% stake in Reworks Oy in an all-cash deal of $400 million. Reworks is a mobile apps company that fuses lifestyle content and social gaming. 

The remaining interest will be acquired for up to $200 million based on 2022 Company EBITDA. As per the agreement, if the agreed-upon 2022 Company EBITDA target is not exceeded, the outstanding 20% will be transferred to Playtika for $1.

This acquisition is expected to increase Playtika’s 2021 revenue by about $30 million. Furthermore, the acquisition is a part of Playtika’s growth strategy, as it provides a large and highly engaged community of design enthusiasts. (See Playtika stock charts on TipRanks)

The Co-founder, CEO and Chairman of Playtika, Robert Antokol, said, “As the fragmented and historically offline market of Home Décor continues to expand onto digital channels, Reworks offers us a compelling opportunity to establish a leading presence in a category that clearly commands a lot of interest and will potentially serve as a foundation to enter further areas beyond traditional gaming.”

Last month, Robert W. Baird analyst Colin Sebastian maintained a Buy rating on Playtika with a price target of $38 (44% upside potential).

“Playtika remains one of the world's leading mobile game publishers, with a strong technology foundation and proven execution, and we believe the company remains well-positioned given healthy core monetization trends and limited exposure to IDFA headwinds.”

Consensus among analysts is a Strong Buy based on 5 unanimous Buys. The average Playtika price target stands at $40.40, implying upside potential of 53.1%.



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The post Playtika Acquires 80% Stake in Reworks; Street Says Buy appeared first on TipRanks Financial Blog.

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By: Radhika Saraogi
Title: Playtika Acquires 80% Stake in Reworks; Street Says Buy
Sourced From: blog.tipranks.com/playtika-acquires-80-stake-in-reworks-street-says-buy/
Published Date: Wed, 01 Sep 2021 11:37:37 +0000

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