So Why Did Double U Games Acquire Double Down? On the other hand the post transaction challenges are going to be significant and this is by definition not a plug and play deal given the cultural, geographical, and operational complexities that lay ahead of all three sides (Double U, Double Down, and IGT). If Double U can follow through on the transactions potential, we could see them becoming an even stronger competitor in the future. Of course, all of these are the immediate shifts in the pyramid, but the real impact of the deal on the leadership structure will take time to be realized.

Playtika still maintains its long lasting #1 position and owns a staggering 25% of the global market. The transaction will also push down Zynga and Scientific Games to the #3 and #4 spots respectively. The combined companies will own approximately 11% market share which will push Double U Games to the #2 spot up from its #8 spot. Double Down on the other hand had a less positive year in terms of growth and generated approximately $280M in 2016, down almost 12% from 2015. Owning a (relatively small) 3.5% of the global Social Casino market share prior to the transaction, Double U Games generated approximately $135M in 2016 a which represents over 20% year over year growth. How will this deal affect market leadership? I can say that the price does not surprise me.Īs I have written in past posts, the consolidation trend is expected to continue due to multiple market forces and I have no doubt that this is not the last deal of this size that will happen in the niche. The transaction was priced at a 10.5 EBITDA multiple and is within range of market standards. The sides have also announced that they will be signing a distribution and services agreement that will give Double U access to IGTs extensive slots portfolio. The deal follows an ongoing trend of consolidation in the market and considering the size of the transaction it will go down as one of the top 3 deals in the past few years. Double U Games announced today that it has acquired Double Down from IGT for $825M.

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