According to Bloomberg data, US corporations participated in $2.5 trillion worth of takeovers in 2021. This easily beats the prior record of $1.96 trillion achieved in 2015.
So that will be tough to beat, but it looks like 2022 will be another year of brisk business. On a historical basis, borrowing costs should stay relatively cheap, even while the Fed is expected to raise its interest rate several times this year. And companies aren’t lacking for firepower, with many big names boasting healthy balance sheets, boosted by the US’ solid economic recovery, which appears set to keep pushing ahead in 2022.
We’ve already had Microsoft intent on scooping up Activision, and Sony is keen on bringing Bungie under the fold, so which other companies could be ripe for the picking?
The Street’s analysts have earmarked several names which could turn up on other companies’ shopping lists. Using TipRanks’ database, we did a deep dive into the data to find out what makes them so attractive.
The first name which could make for a strong acquisition candidate operates in a segment which has already seen robust activity this year — mobile gaming. Playtika develops and publishes mobile casino games, and boasts 35 million monthly active users. Its portfolio includes puzzle video game Best Fiends, Bingo Blitz, Slotomania, and Caesars Slots, amongst others. Apart from distributing its games via its own proprietary platforms, it also does so through a variety of web and mobile platforms, such as Apple, Facebook, and Google.
Playtika entered the public markets in early 2021 and, like many, endured a tough 12 months. The past year has seen the stock shed 47% of its value.
Some lackluster earnings haven’t helped matters, either. The latest, for 3Q21, saw the company miss on both the top and bottom-line. Revenue of $635.9 million fell short of Street expectations by $26.07 million, while EPS of $0.20 came in $0.05 below the analysts’ call.
Nevertheless, Davidson analyst Franco Granda thinks that following the recent acquisition activity in the gaming…