Following the IPO announcement, Roblox finally decided to postpone the plan to next year. The kids gaming company is looking to review the deal to bring more benefit to its employees, and investors involved.
Roblox to postpone IPO, promise better treatment to every party involved
After Airbnb and Doordash’s IPO this week, Wall Street Journal reported that Roblox has decided to postpone its plan to go public. The news came from Roblox’ Chief Executive himself. David Baszucki mentioned in a memo released to his employees on Friday, “we’ve seen companies take innovative approaches to creating a more market-based relationship between investors and companies.” To commit with the target, Roblox will further discuss the matter with its advisors. The plan for Roblox’s IPO will be continued in the early next year.
Investors anticipated Roblox’s IPO
Roblox’s IPO had earned a lot of investors interest. The anticipation on Roblox’s IPO grew with Airbnb and Doordash’s soaring IPO last Wednesday and Thursday. While both companies haven’t generated profits, the company now values for $97 billion and $65 billion respectively, on a fully diluted basis. Judging from Airbnb and Doordash’s IPO, a source told Reuters that increasing its IPO pricing could bring more benefit to Roblox.
Roblox is one of the companies that thrived through the pandemic due to the rising demand in online gaming. Previously, Roblox has been profiting off its virtual currency, Robux, that users purchase to get in-game perks.
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