Is mobile video game stock Playtika (NASDAQ:PLTK) the target of a takeover? Investors are acting like it is, as Playtika stock was up substantially in Thursday afternoon’s trading. While the takeover is hardly a done deal, it’s certainly making some think twice and get in before such a deal happens.
A report from Dealreporter noted that a “limited number of parties” are interested in a deal for Playtika ownership. That includes Advent International and CVC Capital Partners, both of whom expressed interest in a deal ahead of anyone submitting a new bid. Playtika, based on a Seeking Alpha report, has been looking into several strategic alternatives—including a possible sale—since February 2022.
The news comes at an unusual time for Playtika. Playtika just joined developers Jam City and Activision (NASDAQ:ATVI) at GamesBeat Summit 2023 to discuss development issues from costs of player acquisition to market research. Playtika revealed that it was turning to a combination of artificial intelligence and probabilistic models in order to better understand the market and develop strategies accordingly. Anyone who bought Playtika now would likely be able to look into those probabilistic models and see if they could be adapted and used elsewhere.
Despite this, analysts are split on Playtika’s overall future. With three Buy ratings, five Holds, and one Sell, analyst consensus calls Playtika stock a Hold. Further, with an average price target of $12.68, it offers investors 15.8% upside potential.
