In today's video I look at Skillz (NYSE:SKLZ) and share some of my bullish thoughts on the recent announcement that it has acquired Aarki, an ad-tech company.
Three reasons investors should be excited about the acquisition
- Aarki could bring a new form of revenue for Skillz. At the moment Skillz makes most of its money from paying users. The acquisition of an ad-tech company can pave the way to monetizing nonpaying users.
- Aarki has regional sales teams across numerous continents and countries, accelerating Skillz's movement into international markets.
- Skillz's balance sheet should still look healthy after the deal. The acquisition cost is expected to be roughly $150 million in a mixture of stock and cash, and Skillz reported $612 million of cash and short-term investments and no debt from its most recent earnings.
Click the video below for my full thoughts.
*Stock Prices used were the mid-day prices of June 3, 2021. The video was published on June 3, 2021.