Why Skillz Stock Soared Today
Shares of mobile-gaming platform Skillz (NYSE: SKLZ) were soaring on Wednesday after the company announced the acquisition of advertising-technology company Aarki. However, it's likely the acquisition isn't the only thing sending the stock higher today, as we'll see in a moment. As of 1 p.m. EST, Skillz stock was up a whopping 32%.
Skillz is acquiring demand-side platform (DSP) Aarki for $150 million, financed with a combination of stock and cash. The acquisition is good for the company for at least two reasons: First, Skillz should be able to acquire more users by leveraging Aarki's advertising technology and expertise in mobile-gaming ads. Second, this could also improve Skillz's cost structure when acquiring new users since it won't have to deal with third parties as much anymore.
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Source Fool.com
