Skillz Sells Aarki to AppLovin for $300M

TL;DR

Skillz selling Aarki to AppLovin for $300M cash to boost balance sheet.

AI Summary

Skillz Inc. announced on December 5, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Aarki Inc., to AppLovin Corporation for $300 million in cash. This strategic divestiture is expected to significantly strengthen Skillz's balance sheet and enhance its financial flexibility. The transaction is anticipated to close in the first quarter of 2025, subject to customary closing conditions.

Why It Matters

This sale allows Skillz to focus on its core business and improve its financial position, potentially leading to greater stability and future growth opportunities.

Risk Assessment

Risk Level: medium — The sale is subject to closing conditions and potential integration challenges, and the financial impact will depend on Skillz's future strategic execution.

Key Numbers

• $300 million — Sale Price (Cash proceeds from the sale of Aarki Inc. to AppLovin Corporation.)

Key Players & Entities

• Skillz Inc. (company) — Seller
• Aarki Inc. (company) — Subsidiary being sold
• AppLovin Corporation (company) — Buyer
• $300 million (dollar_amount) — Sale price
• December 5, 2024 (date) — Announcement date
• first quarter of 2025 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — stered Class A common stock, par value $0.0001 per share SKLZ NYSE Indicate by chec
• $41.1 million — Company is authorized to purchase up to $41.1 million of its Class A common stock, par value

Filing Documents

• sklz-20241205.htm (8-K) — 28KB
• 0001801661-24-000151.txt ( ) — 151KB
• sklz-20241205.xsd (EX-101.SCH) — 2KB
• sklz-20241205_lab.xml (EX-101.LAB) — 22KB
• sklz-20241205_pre.xml (EX-101.PRE) — 13KB
• sklz-20241205_htm.xml (XML) — 3KB

01

Item 8.01. Other Events. On December 5, 2024, Skillz Inc. (the "Company") announced that its board of directors (the "Board") reapproved the Company's share repurchase program, pursuant to which the Company is authorized to purchase up to $41.1 million of its Class A common stock, par value $0.0001 per share (the "Common Stock"), remaining under the Company's legacy repurchase program. Repurchases under the share repurchase program may be made at management's discretion from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate, legal and regulatory requirements, prevailing stock prices, trading volume, and other considerations. The share repurchase program may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of Common Stock. The Company expects to utilize its existing cash and cash equivalents to fund repurchases under the share repurchase program. The share repurchase program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by the Board.

Forward-Looking Statements

Forward-Looking Statements This Current Report includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the Company's actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company's control and are difficult to predict. For a written description of these factors, see the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended 2023 and any updating information in subsequent Security and Exchange Commission ("SEC") filings, which are available on the SEC's website at www.sec.gov. In addition, any forward-looking statements contained in this Current Report are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this Current Report or to reflect new information or the occurrence of unanticipated events, except as required by law.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SKILLZ INC. (registrant) Date: December 5, 2024 By: /s/ Nikul Patel Name: Nikul Patel Title: Interim General Counsel

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View this 8-K filing on SEC EDGAR