Activision Blizzard is betting $100 million on free-to-play gamemaker Playstudios.
The investment occurred prior to Playstudios going public in June, but only came to light on Thursday.
At the nexus of mobile and casino gaming, Playstudios has long benefitted from affiliations with a big player in each sector: Activision Blizzard and MGM Resorts. Both companies invested in Playstudios’ Series A round in 2011, shortly after the company was founded.
Playstudios went public in June by merging with a SPAC, Acies Acquisition Corp., led by former MGM CEO Jim Murren.
Following the SPAC merger, Playstudios is flush with funds.
- MGM Resorts, BlackRock, ClearBridge Investments, and Neuberger Berman Funds are investing an additional $250 million in the public company.
- Playstudios said it secured an additional $75 million, five-year credit facility to fuel its growth.
- The company said it has around $220 million in cash, which it will use to expand its product portfolio and acquire more gaming companies.
The investment is part of an increasing focus on mobile games for Activision Blizzard. Known for PC and console games, such as “Call of Duty” and “World of Warcraft,” the company said in November that it plans to eventually have mobile versions of all its games.
Mobile games accounted for $734 million of the company’s revenue in Q1, compared to $799 million for console games, and $622 million for PC titles.