The company starts trading tomorrow on the New
York Stock Exchange under ticker “SKLZ”
Transaction includes $849 million in funding
from investors Wellington, Fidelity, Franklin Templeton, and
Neuberger Berman, among others
New capital to accelerate growth in rapidly
expanding mobile gaming market
Skillz Inc. (“Skillz”), the leading mobile games platform
connecting players in fair, fun, and meaningful competition, today
became the first publicly-traded mobile esports platform, following
the completion of its combination with special purpose acquisition
company Flying Eagle Acquisition Corp. (NYSE: FEAC). The combined
company is named Skillz Inc. and its common stock will begin
trading tomorrow on the New York Stock Exchange under the ticker
symbol “SKLZ”. With $250 million in cash and no debt on the balance
sheet, Skillz is poised to capitalize on the massive growth
expected in mobile gaming.
“We built Skillz on the founding belief that esports are for
everyone, and have made significant progress toward our vision of
enabling everyone to share in the future of competition,” said
Andrew Paradise, CEO and founder of Skillz. “We stand at the
intersection of mobile gaming and esports, perhaps the two most
exciting growth opportunities of the next decade. I thank the
entire Skillz team for their dedication, passion, and creativity,
which have led us to this incredible moment on our journey to build
the competition layer of the internet.”
With just a fraction of the world’s 2.7 billion gamers on its
platform today, Skillz has a long runway for growth in building its
service for the 10 million game developers globally. Skillz is
uniquely positioned to capitalize on the rapidly expanding mobile
gaming market, which is expected to more than double by 2025 to
$150 billion. As Skillz moves beyond casual esports into new
genres, adds new monetization models, and enters new geographies,
the company’s addressable market will increase substantially. Going
international is a significant opportunity for Skillz. The
international market is four times larger than the North American
market and represents less than 10% of Skillz revenue today.
Skillz has pioneered the future of the gaming industry, enabling
developers to monetize their content five times better than ads or
in-app purchases. The company’s platform enables game developers to
expand the reach of their games and scale their businesses.
Leveraging powerful network effects built out of the platform’s
data science, Skillz drives more user engagement, higher
conversion, and monetization. Core to the company’s proprietary
advantages is patented anti-cheat and anti-fraud technology
designed to ensure trust and fairness.
“I’ve had a front row seat to the video game and entertainment
industry’s evolution over the past two decades, from my role as
founding investor and board member of Bethesda Games to recently
taking DraftKings public,” said Harry Sloan, Chairman of Flying
Eagle. “We believe that Andrew has positioned Skillz to lead the
convergence of mobile, gaming, and player enablement into the
future of entertainment itself.”
This announcement comes on the heels of a year of continued
success. Skillz saw consistent growth and further expanded
collaborative efforts with game developers, major brands,
influencers, and nonprofit organizations, such as the American
Cancer Society, World Wildlife Fund, and the NAACP.
The transaction includes the $158.5 million PIPE investment led
by Wellington Management Company, Fidelity Management &
Research Company, LLC, Franklin Templeton, and Neuberger Berman. As
previously announced, Skillz founders CEO Andrew Paradise and CRO
Casey Chafkin will continue to lead the company. They will be
supported by Skillz’s highly experienced team, including CTO Miriam
Aguirre and CFO Scott Henry.
About Skillz Inc.
Skillz is the leading mobile games platform that connects
players in fair, fun, and meaningful competition. The Skillz
platform helps developers build multi-million dollar franchises by
enabling social competition in their games. Leveraging its patented
technology, Skillz hosts billions of casual esports tournaments for
millions of mobile players worldwide, and distributes millions in
prizes each month. Skillz has earned recognition as one of Fast
Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’
Next Billion-Dollar Startups, and the #1 fastest-growing company in
America on the Inc. 5000. www.skillz.com
About Flying Eagle Acquisition Corp.
Flying Eagle Acquisition Corp. is a $690 million special purpose
acquisition company founded by Harry E. Sloan, Jeff Sagansky and
Eli Baker for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization, or
similar business combination with one or more businesses. Flying
Eagle’s initial public offering was underwritten by Goldman Sachs
& Co. LLC and Deutsche Bank Securities, and its common stock,
units, and warrants began trading on the NYSE on March 6, 2020
under the ticker symbols FEAC, FEAC.U and FEAC WS, respectively.
www.eagleequityptnrs.com
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. The company’s
actual results may differ from their expectations, estimates, and
projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements.
Most of these factors are outside of the company’s control and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) the ability to recognize the
anticipated benefits of the business combination, which may be
affected by, among other things, competition, the ability of the
company to grow and manage growth profitably, and retain its key
employees; (2) costs related to the business combination; (3) the
inability to maintain the listing of the company’s shares on the
NYSE; (4) the company’s ability to execute its business plan and
meet its projections; (5) the outcome of any legal proceedings that
may be instituted against the company; (6) the impact of COVID-19
on the company’s business; (7) the company’s transition to becoming
a public company including the associated expenses and the impact
of public financial and other disclosures on its negotiations and
arrangements with key counterparties; (8) changes in applicable
laws or regulations; (9) general economic, business, and/or
competitive factors; and (10) other risks and uncertainties
indicated from time to time in the company’s other filings with the
SEC, which are available on the SEC’s website at www.sec.gov.
Additional information will be made available in other filings that
the company makes from time to time with the SEC. In addition, any
forward-looking statements contained in this press release are
based on assumptions that the company believes to be reasonable as
of this date. The company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect new information or the
occurrence of unanticipated events, except as required by law.
Source: Skillz Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20201216006031/en/
For Skillz PR: skillz@methodcommunications.com For Skillz IR:
ir@skillz.com
For Flying Eagle: Jeff Pryor jeff@prioritypr.net +1
818-661-6368, ext. 4
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