The acquisition is accretive to earnings and
aligns with PLAYSTUDIOS’ vision to diversify its game portfolio and
bring playAWARDS to a significantly larger audience, further
demonstrating the value of the company’s unique rewarded-play
model.
PLAYSTUDIOS, Inc. (NASDAQ: MYPS) (“PLAYSTUDIOS” or the
“Company”), the creator of the playAWARDS loyalty platform and an
award-winning developer of free-to-play mobile and social games
that offer real-world rewards to players, today announced the
acquisition of Brainium, a long-standing publisher of casual games.
The acquisition consists of $70 million in upfront cash with
contingent consideration tied to the performance of Brainium for
the period from the closing of the acquisition through December 31,
2022. The acquisition adds a rich suite of popular casual games,
such as Solitaire, Spider Solitaire, Sudoku, and Mahjong, to
PLAYSTUDIOS’ best-in-class game portfolio, and more than doubles
the company’s average daily active users, enhancing the reach and
appeal of its playAWARDS platform to players and rewards
partners.
“The acquisition of Brainium brings a suite of thoughtfully
designed and highly engaging casual games to PLAYSTUDIOS. It also
further diversifies our business by complementing our largely
in-app-purchase (IAP) based revenue model with a meaningful amount
of advertising revenue,” said Andrew Pascal, founder and CEO of
PLAYSTUDIOS. “We look forward to welcoming the Brainium team and
working together to fully leverage our combined strengths in order
to put real-world rewards in the hands of significantly more
players.”
“The acquisition of Brainium checks all the boxes on our growth
strategy: it’s accretive to earnings, it more than doubles our
average daily active users, expands our portfolio of games in new
genres, diversifies our revenue streams, and advances our
playAWARDS platform position, all of which further establish our
position as leaders in rewarded play,” added Jason Hahn, EVP of
Corporate and Business Development of PLAYSTUDIOS.
Brainium, a passionate, Portland-based team of creative game
designers and engineers, will retain its brand name and leadership
team as part of PLAYSTUDIOS. Founded in 2008, Brainium has a
long-standing reputation for elegant and inspiring game development
and for bringing apps to market that have industry leading user
retention, engagement, and profitability. Brainium currently offers
10 unique titles, which collectively reach nearly 5.5 million
monthly active users and 2 million daily active users.
“PLAYSTUDIOS is the perfect home for Brainium as we enter this
next phase of growth,” said Scott Willoughby, Chief Operating
Officer of Brainium Studios. “We look forward to joining their
talented team, leveraging their vast strategic resources, and
offering the unique playAWARDS platform to Brainum’s loyal player
base.”
PLAYSTUDIOS apps, including Tetris®, myVEGAS Slots, myVEGAS
Blackjack, myVEGAS Bingo, POP! Slots, MGM Slots Live, and myKONAMI
Slots, are available to download free on iOS, Android, Kindle, and
Facebook.
PLAYSTUDIOS will host a conference call and audio webcast
on Thursday, October 13, 2022 at 8:30 a.m. Eastern Time to discuss
the acquisition. To listen to the audio webcast and Q&A, please
visit the PLAYSTUDIOS investor relations website at
ir.playstudios.com. Interested parties may also dial (866) 405-1203
or +1 (201) 689-8432. An audio replay of the webcast will be
available on the PLAYSTUDIOS investor relations website shortly
after the call.
About PLAYSTUDIOS
PLAYSTUDIOS, Inc. (Nasdaq: MYPS) creator of the groundbreaking
playAWARDS loyalty platform is a publisher and developer of
award-winning mobile games, including the iconic Tetris® mobile
app, myVEGAS Slots, myVEGAS Blackjack, myVEGAS Bingo, POP! Slots,
MGM Slots Live, and myKONAMI Slots. The playAWARDS loyalty platform
enables players to earn real-world rewards from a global collection
of iconic hospitality, entertainment, and leisure brands.
playAWARDS partners include MGM Resorts International, Wolfgang
Puck, Norwegian Cruise Line, Resorts World, IHG Hotels &
Resorts, Bowlero, Gray Line Tours, and Hippodrome Casino among
others. Founded by a team of veteran gaming, hospitality, and
technology entrepreneurs, PLAYSTUDIOS apps combine the best
elements of popular casual games with compelling real-world
experiences. To learn more about PLAYSTUDIOS, visit
www.playstudios.com.
Daily Active Users (“DAU”): DAU is defined as the number
of individuals who played a game on a particular day. We track DAU
by the player ID, which is assigned for each game installed by an
individual. As such, an individual who plays two different
PLAYSTUDIOS games on the same day is counted as two DAU while an
individual who plays the same PLAYSTUDIOS game on two different
devices is counted as one DAU. Brainium tracks DAU by app instance
ID, which is assigned to each installation of a game on a
particular device. As such, an individual who plays two different
Brainium games on the same day is counted as two DAU while an
individual who plays the same game on two different devices is
counted as two DAU. For both PLAYSTUDIOS and Brainium, average DAU
is calculated as the average of the DAU for each day during the
period presented. We use DAU as a measure of audience engagement to
help us understand the size of the active player base engaged with
our games on a daily basis.
Monthly Active Users (“MAU”): MAU is defined as the
number of individuals who played a game in a particular month. As
with DAU, an individual who plays two different PLAYSTUDIOS games
in the same month is counted as two MAU while an individual who
plays the same game on two different devices is counted as one MAU,
and an individual who plays two different Brainium games on the
same day is counted as two MAU while an individual who plays the
same game on two different devices is counted as two MAU. Average
MAU is calculated as the average of MAU for each calendar month
during the period presented. We use MAU as a measure of audience
engagement to help us understand the size of the active player base
engaged with our games on a monthly basis.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including statements
regarding the company’s acquisition of Brainium, its games, daily
active users and monthly active users of the Brainium games, the
financial performance of Brainium, integrating Brainium into
PLAYSTUDIOS, the anticipated or expected impact of acquiring
Brainium, its financial performance and expected benefits. The
company’s actual results may differ from their expectations,
estimates and projections and consequently, you should not rely on
these forward looking statements as predictions of future events or
results. Words such as “expect,” “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,”
“should,” “believes,” “predicts,” “potential,” “continue,” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from the expected results. Most of these factors
are outside the company’s control and are difficult to predict.
Factors that may cause such differences include, but are not
limited to: the Company’s ability to integrate Brainium and its
employees into its operations; the Company’s reliance on the
employees of Brainium to continue to operate and develop its games;
the Company’s ability to maintain and grow the number of users of
Brainium’s games; the impact of offering rewards to users of
Brainium’s games; the Company’s ability to monetize the Brainium
games; the company’s ability to execute its business plan for the
integration of Brainium and its games; general economic, business,
and/or competitive factors; and other risks and uncertainties
included from time to time in the company’s other filings with the
U.S. Securities and Exchange Commission (the “SEC”). Additional
information will be made available in other filings that the
company makes from time to time with the SEC. In addition, any
forward-looking statements contained in this press release are
based on assumptions that the company believes to be reasonable as
of this date. The company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect new information or the
occurrence of unanticipated events, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20221013005040/en/
PLAYSTUDIOS Investor Relations IR@playstudios.com
Media Relations media@playstudios.com
On the web www.playstudios.com
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