Roblox Goes Public, Wall Street Decides It's Worth Six Bethesdas

Illustration for article titled Roblox Goes Public, Wall Street Decides It's Worth Six Bethesdas
Image: Roblox Corporation

The Roblox Corporation, maker of the online game creation platform Roblox, went public yesterday, selling shares in the company on the New York Stock Exchange for the first time since it was founded back in 2004. It ended the day trading at just under $70, giving it a valuation of $45 billion, or approximately six Bethesda Softwares.

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Roblox is like an MMO that looks part Minecraft, part Lego, where players can design their own games to play with one another, or choose from the overwhelming array of ones that have already been created. Sometimes the games are basic clones of platformers like Super Mario Bros. or battle royales like Fortnite. Occasionally they’re more unusual and abstract, operating like online art installations. In almost every instance they function like virtual hangouts for friends and strangers alike, making Roblox double as a social media platform with over 100 million users that very rich people now want to find a way to get even richer off of.

In 2018 investors thought Roblox was worth $2.5 billion. Last year they thought it was worth $4 billion. Yesterday, at $69.50 a share, they decided it was worth over $38 billion, for a total current valuation of $45 billion when restricted units and employee stock is taken into account, Bloomberg reports. As Eurogamer points out, that’s more than market caps for Electronic Arts ($37 billion), Take-Two ($19 billion), and Ubisoft ($8 billion). It’s also a lot more than the $7.5 billion Microsoft just paid to acquire The Elder Scrolls, Fallout, and Doom maker Bethesda. Activision Blizzard ($70 billion) is one of the few video game makers currently worth more, at least in the eyes of investors.

Roblox’s current valuation is also equivalent to:

Of course, public valuations are also incredibly fickle things, changing from one day to the next, sometimes in massive, completely meaningless swings. Case in point: GameStop. In January GameStop was suddenly worth roughly $20 billion more than it used to be. Then in February it wasn’t. Now in March it is again. Markets move in mysterious ways, just like the appeal of playing Roblox.

But Seriously, What Is Roblox?

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Kotaku staff writer. You can reach him at ethan.gach@kotaku.com

DISCUSSION

admiralasskicker
Admiral Asskicker

If there is one thing that is being hammered home the past 12 months, is that value means nothing.