Gaming company Playtika Holding (Nasdaq: PLTK) reports that its board of directors has completed a review of strategic alternatives and has decided that the company will continue to operate as an independent, publicly traded company. "The Board believes this path best positions the company to create long-term value for shareholders," the announcement states. The market has responded positively to the announcement, and the stock is currently up by more than 12%.
Six months ago, Playtika hired Morgan Stanley as a financial consultant to explore ways of unlocking value for shareholders, a move usually interpreted as an attempt by a company to find a buyer. However, for the second time in the company's history, the process concluded without a deal.
Playtika, headed by co-founder Robert Antokol, develops mobile casino and casual games. A few years ago the company acquired the Israeli company SuperPlay in a deal that included a mechanism for future payments contingent upon specific targets being met. Ironically, Playtika’s "problem" stemmed from SuperPlay’s immense success, which forced Playtika to pay a significantly higher price for the acquisition.
Last week, Playtika’s stock hit an all-time low, though it has recovered slightly in recent days. It had a market cap of $807 million before today’s rise.
The company beat forecasts for the third quarter of the year, reporting revenue of $674 million, virtually unchanged from the same quarter last year, whereas the market had anticipated a decline of about 1.1%. Revenue from the DTC (Direct-to-Consumer) platform (i.e., meaning sales made outside of app stores), which represent a growth engine for the company, grew by 31.4% in comparison with the same quarter last year, though they showed a decline relative to the previous quarter.
GAAP-based net profit totaled $40.4 million, representing an increase of 3.3% over the corresponding quarter, while adjusted EBITDA grew by 15.9% to $252 million. At the end of the quarter, Playtika held cash balances totaling $595 million.
Playtika has reaffirmed its annual guidance, projecting revenue in the range of $2.75-2.85 billion and adjusted EBITDA in the range of $750-790 million.
Operational data for the third quarter present a mixed picture: while the average number of daily paying users declined, the average conversion rate of players into paying users increased.
"With the strategic review complete, we are moving forward as an independent company. Our third quarter reflects what makes Playtika durable: loyal players and games built to last. SuperPlay continued to deliver strong year-over-year growth, with Disney Solitaire up 88%, and June's Journey grew double digits in its ninth year. These results show the resilience of our portfolio," Antokol said.
CFO Tae Lee stated that the company was meeting the targets in the plan it set for itself this year. In the third quarter, marketing expenses were reduced as planned, resulting in a quarterly record for adjusted EBITDA. "We intend to build on that discipline by strengthening our balance sheet," Lee said.
Published by Globes, Israel business news - en.globes.co.il - on November 5, 2026.
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