Playtika has decided to halt its pursuit of a buyer and instead plans to invest $1.2 billion in mergers and acquisitions (M&A) over the next three years, according to its recent capital allocation announcement made alongside its Q4 2023 earnings report.
The company cited “ongoing uncertainty in Israel and Ukraine” as the primary reason for pausing its search for a buyer.
In the earnings report, Playtika revealed that its revenue for the fourth quarter reached $638 million, marking a 1% increase year-over-year in the mobile firm’s earnings.
Speaking about the shift towards M&A activity during the earnings call, Playtika’s President and CFO, Craig Abrahams, highlighted the current environment as conducive to consolidation. He stated, “We do see this environment as one that is a great setup for consolidation. The maturing of the market, the difficulty a lot of the smaller companies have with the advertising market…we think we’re well positioned.”
Playtika disclosed its decision to continue the pause in new game development, which was initially announced a year ago.
CEO and founder Robert Antokol acknowledged Playtika’s historical strengths, stating that the company has not been successful in creating new titles. He emphasized, “Our DNA was always M&A, and we did very well with M&As in the last 10 years.”
