Playtech Sells Plamee Studios & FTX Games

Sports betting

Tilting Point has finalized an acquisition with Playtech PLC, with an undisclosed agreement being announced for the purchase of FTX Games & Plamee Studios. Rumours suggest that acquisition cost exceeded $45 Million when accounting that both brands formally owned by Playtech had cost the company $20 Million each. It’s known that Playtech hasn’t earned a substantial profit through Tilting Point, an American-established publisher. They will maintain all international properties with Plamee Studios & FTX Games, while also keeping those studios workforces employed. It’s one attribute of their agreement that Playtech wouldn’t waiver.

The History of Plamee Studios & FTX Games

Playtech experienced rapid expansive between 2014-15, making acquisition agreements to takeover new development studios. Their first agreement regarded Yo-Yo Games, costing Playtech $20 Million. Yo-Yo Games would be rebranded into “Plamee Casual Game Studios”. It’s suspected that Tilting Point will rename & redesign Plamee to their desired image.

2015 saw Playtech make their 2nd acquisition contract with FunTactix, requiring an additional payment of $20 Million. Playtech selected FunTactix because of their publishing rights on multiple entertainment franchises. Those included Rocky, The Hunger Games, Mission Impossible, and Power Rangers. FTX Games became a reality after the agreement with FunTactix was finalized through Playtech Lawyers. That’s because a software-wide rebranding was implored.

Playtech has found that both brands underperformed after their acquisition. Companies like FTSE100, which operated Yo-Yo Games before ownership was granted to Playtech, bolstered that casual games would become the most popular betting product worldwide. FTSE100 proved themselves wrong & with the onslaught of COVID-19 reducing profits for Playtech, deciding to selloff their underperforming brands was strategically intelligent.

The Downfall to Acquisition

Playtech’s 2014-15 expansion would prove destructive for their reserve funds. Casual games never became popular & neither did FX Trading, another sub-market that Playtech heavily invested into with multi-million agreements. 2018 marked the year where their rapid expansion would backfire, with share prices dropping rapidly. Corporate investors began demanding strong efforts from employed personnel, which wouldn’t be accomplished. Inevitably investors would sell off 10% of Playtech to Plus500. This small divergence of shareholdings from Playtech awarded the developer $230 Million to continue operations.