Private Equity Firm Seeks Full Control of Mobile Game Maker

Private equity firm Joffre Capital is looking to raise capital to fund a potential bid to acquire full control of digital entertainment and mobile gaming company Playtika. 

Joffre Capital’s desire to bid for complete ownership comes after the Israel-based firm agreed to acquire a 25.7% stake in Playtika worth $2.2 billion from a holding company controlled by Chinese video gaming tycoon Shi Yuzhu, according to a regulatory filing. 

• Playtika has a market value of roughly $5.3 billion, per Bloomberg.
• The company generated $676.9 million in revenue in Q1 2022.
• Its net income reached $83.2 million, up from $35.7 million in Q1 2021.
• Full-year revenue is projected to reach $2.73 billion in FY2022. 

Playtika’s willingness to offload full control of its business is no surprise after the company announced in February that its board of directors hired New York-based investment bank The Raine Group to maximize its value for stockholders. 

At the time, Playtika did not rule out a sale or other potential transactions. 

Getting into Gaming 

Despite a potential sale, Playtika has continued to invest in gaming. Earlier this month, Israeli game content platform Edge Gaming raised $30 million in a Series A funding round.

The round was led by Corner Ventures and included existing investors Playtika, AnD Ventures, and Stardom Ventures. Playtika previously led Edge Gaming’s $10 million seed round in 2021.