Skillz announced that it is set to go public through an initial public offering that will value the company at $3.5 billion, 6.3 times the company’s projected revenue for 2022 (which is expected to reach $555 million).
Once closed, Skillz says the company will have approximately $250 million of cash and cash equivalents on its consolidated balance sheet.
“Becoming a public company is an important milestone for Skillz. We look forward to accelerating growth as we work with our developer partners to bring Skillz-powered competitions to every kind of game for billions of gamers worldwide.” Andrew Paradise, CEO & Founder of Skillz, said in a statement.
Skillz will go public later this autumn on the New York Stock Exchange through a special public acquisition company called Flying Eagle Acquisition. Andrew Paradise and Casey Chafkin, CRO and Founder of Skillz, will continue to lead the company.
Skillz is a mobile eSports platform that connects players in a social competition environment. So far, the company has hosted billions of casual esports tournaments with the participation of millions of mobile players from around the world. The company’s public investors will have around $849 million once the transaction ends. Skillz’s investors including Fidelity, Franklin Templeton, Wellington, and Neuberger Berman funds have committed to a $159 million PIPE with total commitments exceeding $250 million.
“I’ve been active in the evolution of gaming for 20 years, from ZeniMax to DraftKings, and I believe Skillz has positioned itself as the platform for the future of gaming, where entertainment, gaming, and enablement converge,” said Flying Eagle Chairman and CEO, Harry E. Sloan in a statement.