- GeneralIPOSPAC
- December 18, 2020
- 3 minutes read
Skillz Soars High On Market Debut
After agreeing to a reverse merger with a blank-check firm this September, the mobile gaming company Skillz has completed its…
After agreeing to a reverse merger with a blank-check firm this September, the mobile gaming company Skillz has completed its merger and became a publicly-traded company this Thursday. It enjoyed a stellar debut that saw its shares rise 127% to $22.73 in its first trading day on the New York Stock Exchange (NYSE).
Skillz merged with the blank-check firm Flying Eagle Acquisition Corp in a deal that handed it $849 million in cash. The company drew investments from big-name firms including Wellington, Fidelity, Franklin Templeton, and Neuberger Berman in addition to the cash it secured from Flying Eagle.
Skillz, a platform that lets mobile gamers compete against each other, has marked one of the biggest blank-check deals for this year.
As to financials, Skillz is performing well, posting $162.4 million in revenue in the first nine months of this year, up 91% compared to the past year. The company is, however, not profitable, losing $78.5 million in the same nine-month period compared to $14.9 million in the previous year.
Skillz hit the public markets eight years after it was founded. Its debut has delivered significant returns for the private investors who bestowed it with over $130 million in venture funding, investors including the likes of WestCap, Telstra Ventures, Liberty Global Ventures, and 32 Equity.
