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Harrah’s buys Israeli Playtika for $80m
Posted By Viva Sarah Press On May 19, 2011 @ 9:29 am In | No Comments
Israeli social games developer Playtika has been acquired by Harrah’s, a unit of Caesar’s Entertainment Corporation, at a company value of $80-90 million. The buyout comes just one year after Playtika was founded.
Harrah’s purchase is the largest acquisition of an Israeli online gaming company to date.
Harrah’s will initially acquire 51% of Playtika, which offers unique multi-platform games on Facebook. According to Playtika’s website, the company has nine million Facebook users.
Playtika was founded in late 2010 by experienced entrepreneurs and gaming industry pioneers Robert Entokol and Uri Shahak. Shahak is the son of former IDF chief of staff Lt.-Gen. Amnon Lipkin-Shahak. It has 15 employees in Israel and 30 employees at its development facility in Ukraine.
Israeli media called the buyout “unusual” mainly because Playtika has not yet proven its worth.
According to a Globes report, Playtika’s monthly turnover is “about $100,000, or $1.2 million a year, and it does not have a positive cash flow from operations.”
Playtika has two games already in use. The company says both are “simple to use and understand, making them accessible to everyone.”
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