The news of mergers and acquisitions (M&A) in the mobile gaming industry can be quite exciting. The latest news that spread like wildfire is Playtika’s acquisition of SuperPlay in a deal worth up to $1.95 billion.
Playtika has agreed to acquire SuperPlay for $700 million, plus an additional $1.25 billion if the studio reaches performance targets over the next three years.
What led to this acquisition? What makes this acquisition exciting for the mobile game industry as a whole?
Playtika’s M&A Strategy
Playtika has always been very strategic with its M&A efforts.
Over nine years, the studio made a total of 11 acquisitions, focusing on studios with proven track records in player retention and monetization. Its record year was 2019 during which it made three acquisitions. After that, Playtika decreased the number of acquisitions to one or two per year.
Last year, Playtika announced that it is pausing new game development until the marketing environment improves. Instead, the studio announced that it would focus its efforts on M&A.
The company’s CEO, Robert Antokol, even stated that Playtika “never had a good history of developing new games” and that it has never been the company’s DNA. “
He explained: “Our DNA was always M&A, and we did very well with M&As in the last 10 years.”
Why SuperPlay
This year, Playtika’s strategic focus landed on SuperPlay, an Israel-based studio with connections to Playtika. Founded by Imog and Eyal Netzer, both former Playtika employees, alongside industry veteran Elad Drory, the studio already had strong ties to the Playtika family.
However, it takes more than just a few shared traits to secure such a deal.
The real reason for the acquisition is SuperPlay’s impressive success in the casual game market with Dice Dreams and Domino Dreams.
The Numbers & Valuation
In August 2024, SuperPlay’s two titles reached 1.7 million daily active users. At the moment, SuperPlay sits at roughly $22 million in monthly revenue from these two games.
These figures are impressive.
But how is this compelling enough for Playtika to invest nearly two billion in the studio?
The key factor here is the studio’s growth spur — SuperPlay saw a 123% year-over-year increase in monthly revenue (AppMagic). At Playtika, they recognized the studio’s continuous growth and its potential to scale even further.
*The data in this section was gathered using the premium version of the AppMagic tool.
SuperPlay’s Focus on Rewarded Ads
You’re probably wondering — how has SuperPlay managed to grow so much so fast?
SuperPlay is known to be one of the top spenders on rewarded ad networks, using these platforms to attract high-quality players for their titles. Through rewarded advertising, the studio aims to reach players who will deliver high ARPU, ROAS, retention, and other user quality metrics.
The numbers suggest they do this very successfully.
SuperPlay’s Dice Dreams currently stands at over 45 million in downloads and almost $330 million in worldwide revenue, making up for a $10.85 revenue per download (AppMagic).
The studio also stands out for its impressive app store ratings for both of its titles. Dice Dreams has a 4.7 rating on Google Play and 4.9 on the App Store, while Domino Dreams scores even higher at 4.8 and 4.9.
This shows that the quality of players attracted through these campaigns translates into positive user experiences.
The key to success?
SuperPlay’s strategic use of rewarded ads encourages players to enjoy and explore their games. These ads motivate players to engage more deeply with games, which leads to higher engagement and revenue figures.
What Does This Mean for the Mobile Gaming Market?
Playtika’s acquisition of SuperPlay is not just about a giant bringing more successful games into its lineup.
It’s also a strong signal that the hype around rewarded advertising is happening for a reason.
The success SuperPlay achieved through advertising on rewarded ad networks shows how effective these models are for user acquisition, engagement, and monetization.
At MAF, we’ve witnessed firsthand how rewarded advertising can drive growth for game studios. If you want to test this strategy for your game, get in touch — we’d be happy to help you achieve the same results!
*Some of the data in this article was gathered using the premium version of the AppMagic tool.
