International Game Technology selling DoubleDown for $825M
April 19, 2017 9:09 AM
by Robert Mann
International Game Technology is selling DoubleDown for $825 million. IGT acquired its social casino business in 2012.
The global gaming manufacturer and supplier will sell the entity to DoubleU Games, a social casino operator based out of Seoul, South Korea for a valuation of 10.5 times its full-year adjusted EBITDA for 2016.
Some industry analysts have surmised that DoubleDown has been negatively impacted by increased competition driven by new applications in the social casino realm.
Wall Street analysts viewed the deal as positive movement for the company. IGT said proceeds from the transaction are going towards general corporate purposes such as paying off debt. The transaction is expected to close in the second quarter of 2017.
The deal also calls for IGT enter into a partnership in which it licenses its game library to DoubleU while providing game development, distribution and other services.