Playtika Stock Falls on Report It Could Sell SuperPlay for up to $1.5B

Shares of Playtika (NASDAQ: PLTK) tumbled Monday amid a report the company is considering the sale of its SuperPlay unit to Tencent (OTC: TCEHY).

In midday trading, shares of the Israeli mobile game developer are off nearly 8% on volume that’s already exceeded the daily average following a report by Calcalist indicating the SuperPlay is in the crosshairs of Tencent at a price of $1 billion to $1.5 billion. Tencent is one of the largest internet and mobile entertainment companies in China.

One of the leaders in the mobile gaming space, Playtika in April announced its second strategic review in an effort to boost a stock that’s shed 88% of its value since its initial public offering (IPO) in January 2021.

At this juncture, it’s not clear when Playtika and Tencent could formalize a deal.

SuperPlay Became an Interesting Problem for Playtika

Playtika announced the acquisition of SuperPlay in September 2024, telling investors at that time the initial purchase price of $700 million could drift up to $1.25 billion if the target hit specific financial metrics over the course of 2025, 2026 and 2027.

As Calcalist reports, SuperPlay is growing rapidly, which in theory should be good news for Playtika. In reality, it’s not because SuperPlay’s growth is saddling the owner with growing future contingent payments. At the end of the first quarter, Playtika forecast $829 million in future contingent payments to SuperPlay, an estimate that grew $95 million from the end of 2025.

Playtika has $2.3 billion in debt maturing in 2028 and 2029, but the interest rates on those liabilities are so low that refinancing the bonds and extending their maturities makes no sense because the issuer would be forced to take on higher interest rates.

Calcalist notes that if Tencent does alleviate Playtika of SuperPlay, the proposed acquisition price would not account for the contingency payments and the buyer would take on that burden, implying the seller could come away with a profit. SuperPlay was founded in 2019 by two former Playtika staffers.

SuperPlay Is an Attractive Target

For a company like Tencent, SuperPlay is a potentially attractive target due to a robust content library, including Dice Dreams and Domino Dreams.

However, the real prize is Disney Solitaire, which debuted last year. That game was the second-largest mobile game launched in 2025 outside of Asia and has already generated $300 million in gross spending by players, according to Pocket Gamer.

Disney Solitaire could pair nicely with Tencent’s Honor of Kings, which is this year’s top-grossing mobile game.