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The activist investor notes that SciPlay hasn\u2019t introduced any new social casino games since the 2019 initial public offering (IPO). Instead, the company adds content to existing hits. As such, \u201cSciPlay can continue to use the New Content for those social casino games.\u201d Currently, SciPlay\u2019s new game efforts are focused on the casual space.<\/p>\n<\/div>\n
Engine Capital is also concerned about the upfront payment required to extend the agreement.<\/p>\n
\u201cBy structuring a potential extension as an upfront payment (as we believe is currently considered), SciPlay\u2019s shareholders would assume the risk associated with the content development. This type of structuring would be highly uncommon in the industry, where such agreements are typically structured as royalty payments,\u201d says the money manager.<\/p>\n
Shares of SciPlay are down 21.3% over the past year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Activist investor Engine Capital recently sent a letter to the board of SciPlay Corp. (NASDAQ:SCPL), pressing the gaming company for an update on its intellectual property (IP) negotiations with Light & Wonder (NASDAQ:LNW). Engine Capital owns 7.4% of SciPlay\u2019s outstanding shares. That makes it the second-largest shareholder in the Las Vegas-based company, behind Light & […]<\/p>\n","protected":false},"author":46,"featured_media":218282,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,22988],"tags":[],"acf":[],"yoast_head":"\n
Engine Capital Says SciPlay Doesn't Need Light & Wonder Pact<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n