Aristocrat Leisure Sells Mobile Gaming Arm Plarium to Modern Times Group for $820M

2 min read | November 11, 2024 05:46 PM PST | By Team Kalkine Media

Google News:

Aristocrat Leisure Sells Mobile Gaming Arm Plarium to Modern Times Group for $820M — Image source: Shutterstock

Recent News

Coca-Cola Stock (NYSE:KO) Valuation After Strong Long-Term Returns

Trane Technologies (NYSE:TT) Draws Fresh ESG Spotlight

Phillips 66 (NYSE:PSX) Valuation Buzz Turns Energy Eyes Sharper

Lowe’s Companies (NYSE:LOW) Brand Push Gets Louder

Make Kalkine Media
My Trusted Source

Highlights

Aristocrat to sell Plarium Global for up to $820 million to Sweden’s Modern Times Group.

Sale aligns with Aristocrat’s focus on regulated gaming content and social slots.

Company continues review of Big Fish Games, with potential $110 million goodwill impairment.

Aristocrat Leisure (ASX:ALL), a leading global entertainment and gaming content provider, announced the sale of its mobile gaming subsidiary, Plarium Global, to Sweden’s Modern Times Group (MTG) for up to USD $820 million. This transaction, expected to close in the first half of 2025 pending regulatory approval, comes as part of Aristocrat's strategic shift to refocus on its regulated gaming and social slots sectors.

Aristocrat, widely recognized for its electronic gaming machines and digital platforms, operates in three core areas: land-based gaming, mobile game publishing, and regulated online real-money gaming. Plarium, acquired by Aristocrat in 2017, is well-known for popular mobile titles such as "Raid: Shadow Legends" and "Vikings: War of Clans."

Under the terms of the agreement, Aristocrat will receive a fixed USD $620 million payment, with an additional USD $200 million contingent on Plarium meeting specific performance targets between 2025 and 2028. Plarium contributed approximately USD $615 million in revenue to Aristocrat’s Pixel United division in the fiscal year ending September 30, 2024.

A Strategic Shift Towards Regulated Gaming Content

The sale of Plarium follows Aristocrat’s strategic review of its casual and mid-core gaming assets, which began in May 2024. Aristocrat CEO Trevor Croker commented on the divestment, noting that it enables the company to “lean further into our core strengths in regulated gaming content and social slots,” underscoring Aristocrat’s goal to concentrate on markets with established gaming regulations.

Additionally, Aristocrat is actively reviewing another subsidiary, Big Fish Games, as part of its asset review. The company anticipates recording a goodwill impairment charge of approximately USD $110 million for Big Fish Games in its FY24 financial results, reflecting market adjustments in the mobile gaming sector.

Potential Impact and Future Direction

The Plarium sale aligns with Aristocrat’s commitment to maximizing value in its core business areas and exploring high-growth opportunities within regulated gaming markets. By refining its portfolio, Aristocrat aims to sharpen its focus on sectors that align with its expertise, particularly as global demand for regulated digital gaming and social gaming experiences continues to rise.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.