Game Maker New Century Says Playtika Acquisition Excludes Gambling Business

Yicai

2016-12-12

(Yicai Global) Dec 12 -- Chinese gaming company New Century Cruise Co. [SHE:002558] said its plan to buy Israel's Playtika for almost USD4.42 billion does not include its gambling business after China's securities watchdog queried the high price tag and which business lines would be acquired.

The purchase cost is not inflated, Chongqing-based New Century said on Dec. 11. Playtika’s annual revenue hit CNY4.55 billion (USD659 million), higher than similar-sized gaming companies in China, and its profit margin of 23.47 percent was also higher than the average domestic level of 20.78 percent, New Century said.

Though Herzliya-based Playtika is affiliated to US gaming giant Caesars Entertainment Corp., its online games do not involve gambling in the US, Canada, Australia, the UK and Israel, New Century said, citing lawyers in those countries.

New Century announced its plan to buy Playtika in October. Reports have since shown that the company focuses on the development and operation of cross-platform social gaming. It has six major products, of which Slotomania and WSOP are casino-style games.