Israeli mobile gaming company Playtika has confirmed it is in talks to sell its SuperPlay subsidiary to Chinese internet conglomerate Tencent for a potential sum of up to $1.5bn (£1.16bn). The negotiations, first reported on Sunday, highlight Tencent's strategy of deepening its foothold in the casual gaming market, which has seen strong engagement among UK smartphone users.
SuperPlay, acquired by Playtika in 2021 for around $700m, is best known for its hit titles Dice Dreams and Domino Dreams, both of which have generated significant revenue through in-app purchases. The proposed sale price — roughly double what Playtika paid five years ago — reflects the studio's growing user base and profitability, according to industry analysts. The deal is expected to close later this year, subject to regulatory approvals.
For Tencent, the acquisition would bolster its portfolio of casual games at a time when the Chinese regulator has signalled a cautious but steady reopening of the domestic gaming market. The company already owns stakes in Epic Games, Riot Games, and Supercell, and has been actively seeking to expand its global reach through mobile-first franchises. UK-based developers and publishers may face increased competition as Tencent leverages its vast distribution network and data capabilities.
On the London Stock Exchange, shares of UK-listed gaming firms such as Keywords Studios and Team17 moved modestly lower in early trading on Monday, as investors weighed the implications of further consolidation by deep-pocketed Asian buyers. The FTSE 100 edged down 0.2% to 8,245 points, while the FTSE 250 slipped 0.3% to 20,610. Analysts at Peel Hunt noted that the deal could trigger a wave of M&A in the mobile gaming sector, with potential knock-on effects for UK pension funds that hold stakes in larger gaming conglomerates.
From a UK investor perspective, the transaction serves as a reminder of the premium that strategic buyers are willing to pay for high-margin, recurring-revenue gaming assets. However, regulatory scrutiny — particularly around data privacy and national security — remains a risk, especially given Tencent's Chinese ownership. The Competition and Markets Authority (CMA) has yet to comment on whether it will review the deal under the National Security and Investment Act.