Playstudios is reported to be the target of the Jim Murren-led SPAC Accies Acquisition as it looks to spend the $200m raised in its IPO in social gaming.
They say the apple never falls far from the tree. So perhaps it should not come as a surprise that ex-MGM CEO Jim Murren’s SPAC is seeking to spend its IPO cash on a company part-owned by… MGM.
Playstudios is the developer behind social casino myVegas slots and myVegas blackjack.
The company has been backed by MGM Resorts International, Murren’s old squeeze along with two other venture capital outfits.
Users of the myVegas products can collect rewards points which can be redeemed at MGM venues.
It was only this week that Playstudios announced it was expanding its partnership with MGM, adding the Springfield resort to its in-app loyalty rewards scheme.
The next wave
Accies IPO’d in October last year and raised $215m. The Special Purpose Acquisition Company set out to find a gaming or betting opportunity.
It also includes Chris Grove of Eilers & Kreijcek among its advisors.
The company is one of a number of gaming and gambling-related SPACs that have hit the market since DraftKings led the way at the end of 2019.
The latest one to hit the headlines is 26 Capital Acquisition Corp led by long-time gambling sector investor Jason Ader.
Rush Street Interactive and Golden Nugget Online Gaming are two companies which have recently floated following SPAC deals.
Another SPAC looking for opportunities in the gambling sector is Tekkorp, led by previous SG Digital executive Matt Davey.
Play the game
There are further close ties between Accies and Playstudios. The CEO of Playstudios, Andrew Pascal, is also on the advisory ticket with Accies.
Playstudios was founded in 2011 and it first teamed up with MGM a year later.
The second coming of social gaming appeared to be confirmed by the floatation of Playtika earlier in January.
On debut the company enjoyed a 24% share price bump leaving it valued at $13.8bn.
Social gaming does not have any impact on the gaming friendliness of any given state as measured by the Wedge Index.
This is despite its appeal as a product which can be legally played in any state.