Mobile gaming platform Skillz Inc and SPA firm Flying Eagle Acquisition Corp have agreed to a business combination that will result in the former becoming a publicly-listed company. The transaction implies an equity valuation for Skillz of $3.5bn, or 6.3x projected 2022 revenue.
Skillz, which powers tournaments for thousands of game developers around the world, uses patented technology that is expected to power over two billion casual esports tournaments and facilitate $1.6bn in paid entry fees for games hosted on its secure and proprietary platform.
“Today we’re a leader in casual esports and are well positioned to capture the global esports opportunity which will increasingly define the gaming market,” said Andrew Paradise, CEO and Founder of Skillz. “Skillz fulfills the human desire for community and competition and is shaping the future of interactive entertainment.”
Flying Eagle Chairman and CEO Harry E Sloan commented: “I’ve been active in the evolution of gaming for 20 years, from ZeniMax to DraftKings, and I believe Skillz has positioned itself as the platform for the future of gaming, where entertainment, gaming, and enablement converge.
Sloan’s involvement in the video game business dates back to 1999 when he was a founding investor and board member of ZeniMax Media Inc, the award-winning creator and publisher of interactive entertainment and its Bethesda Game Studio. Sloan is partnered on Flying Eagle with Jeff Sagansky and Eli Baker, who together took DraftKings public in April 2020.
“Becoming a public company is an important milestone for Skillz,” added Paradise. “We look forward to accelerating growth as we work with our developer partners to bring Skillz-powered competitions to every kind of game for billions of gamers worldwide.”