Joffre Capital acquires 25.7% stake in Playtika

Private equity firm Joffre Capital has acquired a 20 per cent minority stake in social casino games specialist Playtika, according to a regulatory filling on Tuesday 28 June, as reported by Reuters.

Joffre has agreed to purchase 106.1 million shares, representing 25.7 per cent of outstansing shares, at $21 each.

This is considerably higher than market price – 46 per cent premium over trading prices on Monday June 27.

Continuous declines following ATT

Shares in the company have been falling since Q3 2021, with industry analyst Eric Seufert reporting a 25 per cent decrease at the time.

Mobile gaming developer Playtika’s stock is down 25% today after missing analyst forecasts and cutting Q4 guidance. Playtika’s management had previously dismissed concerns about Apple’s ATT privacy policy pic.twitter.com/cGE2WfsGP4

— Eric Seufert (@eric_seufert) November 3, 2021

This decline has been attributed to Apple’s ATT, which has led to significant disruption in mobile gaming monetisation and ad approaches, affected the company’s re-engagement strategies.

“Playtika’s legacy catalog of social casino games features a deep well of dormant players; Playtika is generally seen as one of the industry’s leading performance marketing operators and has highlighted the prominent role that re-engagement campaigns (sometimes referred to as “retargeting”) play in its success”, wrote Seufert.

Last month, the company announced layoffs across three development studios in London, UK; Montreal, Canada, and Los Angeles, US, accounting for roughly six per cent of its workforce.