User-generated game platform Roblox has seen its users go through the roof in recent years, and the company is reportedly planning to go public early next year at a valuation that could hit $8 billion, according to a report in CNBC.
CNBC said Roblox is working with investment banks to prepare for going public on the U.S. stock market. The company most recently raised $150 million in venture funding from Andreessen Horowitz in a deal announced in February.
Roblox declined to comment on the CNBC report. But one source we contacted confirmed they believe the report is accurate.
The deal wouldn’t be surprising, as other game companies have turned to public markets in recent weeks. The game industry is one of the few sectors that is doing well in the pandemic. Game engine maker Unity raised $1.3 billion at a $13.6 billion valuation in an IPO on September 18, even though it is losing money. Unity’s shares are up more than 60% since trading began.
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Skillz, which turns games into skill-based cash reward competitions, is planning to go public at a $3.5 billion valuation through a special public acquisition company (SPAC).
Roblox is reportedly weighing whether to go through a traditional IPO or a direct listing, CNBC said. In a direct listing, no new shares are sold, and underwriting banks do not weigh in on the pricing, unlike in an IPO. A lot of this depends on the health of the stock market, which has been volatile this year.
CEO Dave Baszucki founded Roblox in 2004, enabling anyone to make Lego-like characters and build rudimentary games for kids. The company has continuously beefed up that capability, and it has grown to