A junta of Chinese corporations led by Giant will purchase Playtika for $4.4 billion. Playtika is the social gaming casino company owned by Caesars Interactive Entertainment (CIE). There have been numerous rumors over the last few months on whether or not Caesars would sell off CIE and their crown jewel the WSOP. Looks like Caesars sold Playtika instead, which is technically owned by CIE.
Would Caesars Interactive Entertainment (CIE) sell off the WSOP? That was the billion dollar question. A cash-scrapped Caesars was looking to liquidate their most valuable assets. Among them included the World Series of Poker brand and their online poker website. Instead of selling the WSOP, CIE sold off their social gaming online casino site Playtika to a "consortium" of Chinese companies led by two of the wealthiest men in china – Jack Ma and Shi Yuzhu. The sale was led by Giant a.k.a. Shanghai Giant Network Technology Co., Ltd. And officially announced in a press release. The price tag for Playtika was a whopping $4.4M.
The only place to gamble legally in China is in Macau. The online social media gaming side will open up Chinese internet users to multiple gambling-like options under the freemium model.
Looks like Shi Yuzhu, the chairman of Giant, can now add an American social media gaming site to his collection of major corporate holdings. The overall consortium is comprised of Yunfeng Capital (the private equity company run by Alibaba's Jack Ma), Hony Capital Fund (a.k.a Legend Holdings), China Oceanwide Holdings Group Co., and China Minsheng Trust Co.
"Playtika's growth has been exceptional, and highlights its outstanding team, excellent corporate culture, cutting-edge big data analytics, and its unique ability to transform and grow games," said a representative from Shi Yuzhu. "We are looking forward to Playtika continuing to innovate and excel."
Playtika's CEO Robert Antokol seemed thrilled about the $4.4 billion sale. "This transaction is a testament to Playtika's unique culture and the innovative spirit of our employees who for the past six years have consistently designed, produced and operated some of the most compelling, immersive and creative social games in the world. We are incredibly excited by the commercial opportunities the Consortium will make available to us, particularly in its ability to provide us access to large and rapidly growing emerging markets. This is an amazing milestone for all Playtikans and we truly value how unique this opportunity is to continue executing our vision with such a strong partner."
Mitch Garber, Caesars Interactive Entertainment Chairman and CEO
"It has been a particularly rewarding experience growing Playtika from a 10-person start-up, when CIE acquired them in 2011, into a global leader. Playtika today is a highly profitable growth company with more than 1,300 employees, multiple top grossing titles and millions of daily users. Robert is a true visionary and Israeli business leader who has created not only a great business, but also the most unique corporate culture I have seen in my career."
So is the WSOP next up on the chopping block? Will it get sold next? Or does the sale of Playtika means that the WSOP is safe...for now?