US-headquartered online gaming platform developer Roblox confirmed yesterday it has confidentially filed for an initial public offering on an undetermined market that could allow internet group Tencent to exit.
Formerly known as DynaBlocks, Roblox is the creator of an immersive gaming platform with more than 120 million monthly active users who can create, play and share games with each other. Sources told Reuters recently that it would seek a valuation of about $8bn in its forthcoming IPO.
The offering comes as the company is looking to expand another part of its offering, which allows music artists to host virtual concerts. In the absence of any meaningful options for live music during coronavirus-focused social distancing measures, it could prove a fruitful area for growth.
Tencent took part in Roblox’s $150m series G round in February this year, which boosted its overall funding to roughly $550m. It was led by Andreessen Horowitz and which included Temasek, Altos Ventures, Meritech Capital and Tiger Global Management.
The series G funding was secured at a $4bn valuation and Altos Ventures, Meritech Capital and Tiger Global participated as existing investors. The company’s earlier backers include Greylock Partners and First Round Capital.
