Tencent is in exclusive negotiations to buy SuperPlay, the Israeli mobile gaming studio owned by Playtika, in a deal valued between $1 billion and $1.5 billion. If it goes through, Playtika would be flipping an asset it acquired in September 2024 for a hefty premium, while Tencent would be adding another jewel to what is already the world’s largest gaming portfolio.

Playtika originally picked up SuperPlay for $700 million upfront, with potential earnout payments that could push the total acquisition cost to roughly $1.95 billion to $2 billion based on the studio’s performance through 2027. Selling now at the reported range would effectively let Playtika offload those looming earnout obligations while still pocketing a meaningful return on the initial cash outlay.

The SuperPlay backstory

SuperPlay was founded in 2018 and operates out of the Tel Aviv and Rosh HaAyin area. The studio made its name with Dice Dreams and Domino Dreams, two casual mobile titles that carved out a loyal player base in the notoriously crowded app store ecosystem.

When Playtika acquired SuperPlay in late 2024, the deal was framed as a strategic push to strengthen its casual gaming portfolio. The earnout structure built into the original deal tells you something important about expectations. A $700 million upfront payment with potential earnouts reaching $1.25 billion meant Playtika was betting big that SuperPlay’s growth trajectory would continue climbing. SuperPlay’s impressive performance since the acquisition is precisely what triggered meaningful earnout obligations, and ironically, that success is what now makes the studio attractive enough for Tencent to come knocking.

Why Tencent wants in

Tencent is no stranger to acquisitions in the gaming space. The Shenzhen-based conglomerate has stakes in Riot Games, Epic Games, Supercell, and dozens of other studios across the globe.

The Israel angle matters too. The country has quietly become one of the world’s most productive hubs for mobile gaming talent, with studios like Playtika, Moon Active, and SuperPlay all building globally successful titles from a relatively small ecosystem. Tencent acquiring SuperPlay would give it a direct operational presence in that talent pool.

What this means for investors

For Playtika shareholders, the calculus is relatively straightforward. Offloading SuperPlay at $1 billion to $1.5 billion would eliminate what could be hundreds of millions in future earnout payments while generating immediate cash.

There is a risk embedded in this move, though. SuperPlay has been one of Playtika’s strongest growth engines since the acquisition. Selling it removes a proven revenue contributor from the portfolio, which could leave a gap that’s not easily filled.

The negotiations are still in early stages, with neither Tencent nor Playtika confirming the talks publicly as of July 20, 2026.

If the deal closes toward the higher end of the reported range, it would represent roughly a 2x return on Playtika’s original $700 million cash investment in under two years.