User-generated gaming platform Roblox has seen its users go through the roof in the past few years, and the company is reportedly planning to go public early next year, with a valuation of US $ 8 billion, according to a report by CNBC -Dollars.
According to CNBC, Roblox is working with investment banks to prepare for going public on the US stock exchange. The company most recently raised $ 150 million in risk financing from Andreessen Horowitz as part of a deal announced in February.
Roblox declined to comment on the CNBC report. However, a source we contacted confirmed that the report was correct.
The deal wouldn’t come as a surprise given that other gaming companies have moved to the public markets in recent weeks. The gaming industry is one of the few sectors that is doing well in the pandemic. Game engine maker Unity raised $ 1
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Skillz, which turns games into competency-based cash reward competitions, plans to go public through a special public acquisition company (SPAC) valued at $ 3.5 billion.
According to CNBC, Roblox is considering whether to do a traditional IPO or a direct listing. With a direct listing, no new shares are sold and the underwriting banks do not charge pricing unlike an IPO. Much of that depends on the health of the stock market, which has been volatile this year.
CEO Dave Baszucki founded Roblox in 2004 and enabled everyone to develop Lego-like characters and make rudimentary games for children. The company has continuously improved this capability, growing to more than 115 million monthly active users who play 1.5 billion hours of games per month. Roblox shares the revenue with its game developers, enabling high school students and young adults to become millionaires after beating games.
Baszucki is a big fan of the Metaverse, the universe of virtual worlds that are all interconnected, like in novels like Snowfall and Ready player one. At our GamesBeat Summit in April, Roblox’s Matt Curtis spoke about the tools the company is developing to implement the version of the Metaverse.
It’s the same goal that Epic Games, maker of Fortnite, is reportedly pursuing as well as numerous other companies. But Roblox is a good platform for user-generated content. Many of its top 10 games receive billions of games.