myps-20230228

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

February 28, 2023

Date of Report (date of earliest event reported)

PLAYSTUDIOS, Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-39652

88-1802794

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

10150 Covington Cross Drive, Las Vegas, Nevada

89144

(Address of Principal Executive Offices)

(Zip Code)

Registrant's telephone number, including area code: (725) 877-7000

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock

MYPS

Nasdaq Stock Market LLC

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share

MYPSW

Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05 Cost Associated with Exit or Disposal Activities.

On February 28, 2023, PLAYSTUDIOS, Inc. (the “Company”) initiated an internal reorganization plan (the “Plan”) which is intended to enhance efficiency and reduce operating expenses. The Plan includes a reduction of the Company’s current total global workforce by approximately 14 percent. The Company expects to substantially complete the personnel reduction by the end of the second quarter of fiscal year 2023, but the timing of certain reductions will vary based on job function and location, including local legal requirements.

The Company estimates that it will incur approximately $4.5 million to $5.5 million in charges in connection with the Plan, which will be substantially incurred in the first and second quarters of fiscal year 2023. These charges primarily relate to employee transition, severance payments, employee benefits, stock-based compensation, and lease termination costs. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan.

Item 7.01 Regulation FD Disclosure

On February 28, 2023, Andrew Pascal, the Chairman and Chief Executive Officer of the Company, sent an e-mail communication to Company employees regarding the Plan. A copy of the communication was also posted to the Company’s website and is furnished herewith as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall either be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific references in such filing.

Item 9.01. Financial Statements and Exhibits

(a)None

(b)None

(c)None

(d)Exhibits


Exhibit Number						Description
99.1*						Employee Communication dated February 28, 2023.
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


*			Filed herewith

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 hereunto duly authorized.

Dated: March 3, 2023


PLAYSTUDIOS, Inc.

By:	/s/ Scott Peterson
	Name:	Scott Peterson
	Title:	Chief Financial Officer

PLAYSTUDIOS, Inc. Confidential February 28th, 2023 TO: All playMAKERS VIA E-MAIL As we all know, we play in one of the largest and most dynamic segments of the entertainment industry. Every day, we respond to the evolving tastes and preferences of our players, the proliferation of new technologies, and the unrelenting demand to quicken our operating cadence. To thrive in this demanding environment, we must apply to the design of our organization the same creative thinking and disciplined decision-making that drive the success of our games. While the last few years have presented us with a number of unprecedented challenges, they have also opened up new opportunities. During this time, we have taken the company public, secured the rights to the iconic Tetris game, enriched our playAWARDS capabilities with the acquisition of WonderBlocks, and diversified our portfolio with the purchase of Brainium. We’ve also tapped new global markets for creative and technical talent, establishing studios in Southeast Asia and Eastern Europe, and seeding new teams in Latin America. As a result, we have scaled the company and its development capacity in a way that allows us to be flexible and stay competitive. Recently, we began the process of implementing a set of wide-reaching organizational changes to better align the talent and capabilities across studios with our current business needs. More specifically, we have moved away from the regional management of products and key initiatives to the global oversight of our two primary business divisions – playGAMES, responsible for developing, publishing, and operating our mobile apps, and playAWARDS, responsible for scaling and operating our loyalty marketing platform. As part of this continuing effort, we are further refining our operating framework by consolidating and refocusing some of our key business activities. More notably:

PLAYSTUDIOS, Inc. Confidential • Game Management - Our Israel studio excels in operating and monetizing games, as demonstrated by the performance of our award-winning POP! Slots and MGM Slots Live titles. To more fully leverage this expertise, myVEGAS Slots and myKONAMI Slots will now be led and managed by our playMAKERS in Tel Aviv. • R&D, Creative & Production – Our playMAKERS in Eastern Europe, Asia, and Latin America have shown their ability to create and execute at scale and to elevate the production standards that have become a hallmark of our games. Their studios will now become our primary centers for content development and production. • Loyalty Leadership & Execution – Our Las Vegas playMAKERS, many of whom are seasoned veterans of the hospitality and loyalty marketing industry, work tirelessly to maintain the level of customer intimacy that informs nearly everything we do. Their studio will remain the center of all things related to playAWARDS, including the continued development of our platform and tools, servicing our reward partnerships, managing our players, and hosting our real-world events. • Genre Mastery – We recognize and respect the nuances that are unique to each style of game. As such, we are committed to acquiring, nurturing, and expanding our capabilities across the collection of genres reflected in our portfolio. In this spirit, we will continue to look to our colleagues at Brainium to advance and expand our casual games, our team in Singapore to contribute to our puzzle initiatives, and our slotSTUDIO to elevate the core content of our chance-based games. • Infrastructure & Platform Development – Our operating infrastructure, along with our generalized platforms and tools, will continue to be advanced by our capable teams in Tel Aviv, Asia, and the US. With this in mind, we are reducing our presence in Hong Kong and Austin, and making other select adjustments that will result in a global reduction of 120 playMAKERS. All those who are impacted by this transition have already been contacted by their respective team leaders. We will also be hosting several town-hall meetings over the next few days where we will discuss these changes in more detail.

PLAYSTUDIOS, Inc. Confidential These decisions, while difficult, are necessary. On a very personal level they affect a number of our colleagues who have shared our vision and worked hard to help us achieve it. They’ve been amazing partners and friends, who have shaped our work- experience while helping us create incredible games and lasting memories for millions of players. We promise to honor their contributions by handling their transition in the most thoughtful, compassionate, and responsible way possible. As we work through these changes in the weeks and months ahead, we must not lose sight of our core values. We play to win. We play together. We never forget the player. In this spirit, we will continue to invest in our business and enhance our capacity to create and innovate. We recently celebrated the 10-year anniversary of our very first game - myVEGAS on Facebook. Looking back, I will be forever grateful to all the playMAKERS, past and present, whose talent and tenacity has carried us to where we are today. Looking forward, I truly believe that we are just getting started, and that with renewed focus and purpose we will make the best of what’s ahead.