Skillz (NYSE:SKLZ) reported on August 2, a day before earnings, that it had entered a strategic partnership with Exit Games. In today's video I look at how this partnership can benefit Skillz in the long term, and below I share some highlights from the video.
- Exit Games is the developer of Photon, a platform used by thousands of game publishers and developers to add multiplayer capabilities to games easily. Ubisoft (OTC:UBSFF), EA Games (NASDAQ:EA), and Square Enix (OTC:SQNXF) are some of the game publishers that have previously used Photon's services.
- Skillz has invested $50 million for a minority stake in Exit Games. The CEO of Skillz has also joined the board of Exit Games. Skillz has also gained permanent access to Exit's technology. This technology advancement for Skillz can accelerate its expansion into new genres.
- Earnings for Skillz are scheduled for August 3, 2021, after the market closes. During the earnings call, investors will want to pay attention to how soon this partnership can start providing positive returns for Skillz.
Click the video below for my full thoughts and analysis.
*Stock prices used were the premarket prices of August 2, 2021. The video was published on August 2, 2021.