Skillz Inc. (SKLZ) stock announced an acquisition agreement with Aarki Inc after which the SKLZ stock price saw a push of 20.55% to reach $20.47 a share as of this writing. The per-share price of SKLZ stock was $16.99 at closing. Let’s deep dive to explore more of it.
SKLZ stock on Wednesday, June 2, 2021, announced the acquisition agreement according to which Skillz would acquire the Aarki, which is the leading marketing platform. This acquisition would enable Skillz to expand its presence in the fast-growing mobile industry via the integration of its competitive platform with the advanced and up-to-date advertising capabilities of Aarki.
The advanced machine learning algorithm would pair the right impression with the right user thus would unlock the new connectivity points between developers, consumers as well as brands. The amount for this acquisition is $150 million which will be given in the form of cash and stock. The acquisition is expected to complete in the third quarter of 2021 subjective to customary closing conditions.
Class Action Lawsuit
The second news related to SKLZ stock today is the commencing of a class-action lawsuit by Levi & Korsinsky, LLP on behalf of shareholders of SKLZ stock. According to this filed complaint, SKLZ stock made misleading statements or failed to disclose the following.
- Skillz’s representation of its business operations, performance, and its ultimate valuation.
- Skillz’s guidance for future profitability and potential to get new customers.
- The dwindling popularity of its hosted games that are responsible for 88% of its overall revenue.
About Skillz Inc
Skillz Inc is the leading mobile game platform that connects gaming enthusiasts across the globe. The gaming platform host esports tournaments. The company has a market cap of 7.615 billion and an average trading volume of 21,186,290. Skillz Inc was founded in 2012 and its headquarters are in San Francisco, California, United States.
Investors are responding to the acquisition agreement announcement by Skillz stock as it went up today. SKLZ management is optimistic that this acquisition would improve the cost structure. In a nutshell, investors need to keep an eye on this stock.