A rendering of the in-game action from the hit Roblox game “Jailbreak.”
Source: Roblox
Roblox, the kids online gaming company, said on Wednesday that it raised $520 million in a private financing round and announced separately that it will soon go public through a direct listing.
Late last year, Roblox filed to go public, but the company delayed its debut after shares of DoorDash and Airbnb soared more than expected out of the gate. By following companies like Spotify, Slack and Palantir, which all used direct listings, Roblox will let existing shareholders and employees sell stock to new investors on day one.
The financing round values Roblox at $29.5 billion, an almost five-fold increase from its last funding in February 2020. Revenue surged last year as kids, who were forced to stay home during the pandemic, spent more time playing games.
Roblox said it plans to file a registration statement with the SEC for a direct listing, but didn’t provide a timeframe. The deal is expected soon.
