![]() What is the best word to start the game?Īt the beginning of the game, try to use a word without repeating letters and with as many vowels as possible, such as the word "RADIO".To win you need to completely guess the hidden word (all letters are green). The letter is in the word and in the correct spot. The letter is in the word but in the wrong spot. The letter isn't in the target word at all. Depending on which word you entered, the letters will be highlighted in three colors. In each line, you need to enter any word from 4 to 11 letters to find out what letters are in the target word. In practice, we don’t believe it is in the best interest of Light & Wonder to license this content to a third party and hurt its large, strategic investment in SciPlay.” Not Much Value in New ContentĪdding to the questions surrounding the SciPlay/Light & Wonder talks is Engine Capital’s argument that Light & Wonder’s new content may be of little or no value to SciPlay.The main goal of the game is to guess the hidden word in 6 tries. The only reason to extend the IP agreement would be to ensure that this New Content is exclusive to SciPlay. “It doesn’t need to extend the IP agreement to have access to that content, per the initial IP agreement. “SciPlay already has access to Light & Wonder’s New Content on a non-exclusive basis for its existing social casino games,” adds the activist investor. As such, Engine Capital believes the only valid reasons to renew the pact are if SciPlay obtains exclusive rights to Light & Wonder content and if that content can be used in SciPlay games that weren’t around in 2019. Under the terms of the existing agreement, SciPlay has non-exclusive rights to Light & Wonder content only for existing games. “Given the related-party nature of this negotiation and these potential conflicts of interest, we are requesting that the Board form a special committee of independent directors to handle these negotiations and appoint a Lead Independent Director to strengthen the Company’s governance,” writes Engine Capital. It goes on to say there are possible governance issues because Light & Wonder CEO Barry Cottle is also the executive chairman of SciPlay. But the investor’s choice words don’t end there. In its view, Engine Capital sees an extension of the IP accord as being of no value to SciPlay. Engine Capital Highlights Potential Governance Issue The games are free to play but feature in-app purchases. SciPlay’s well-known offerings are Jackpot Party, Quick Hit Slots, Gold Fish Casino Slots, Hot Shot Casino, 88 Fortunes, Bingo Showdown, and Monopoly Slots. “We have repeatedly asked to meet privately with the independent directors to share our views on this topic, but were told that such a meeting would be inappropriate, which is why we have been forced to make our concerns public.” Since then, we have had multiple discussions with management, which have only heightened our initial concern that an extension of this IP is unnecessary,” said the investor in its letter to SciPlay directors. On May 13, 2022, we sent you a private letter expressing our concerns regarding these negotiations. With that anniversary near, SciPlay and Light & Wonder are currently discussing a possible extension.Įngine Capital has concerns about the talks and is pressing the SciPlay board for a meeting. At the time of that transaction, SciPlay doled out $255 million for a perpetual licensing agreement with its former parent, entitling it to “exclusive access” to all Light & Wonder-created content until the third anniversary of that accord. Light & Wonder spun off that 19% of SciPlay in 2019. But that takeover effort was later abandoned. Last year, Light & Wonder, then known as Scientific Games, attempted to acquire the 19% of SciPlay it didn’t own. That makes it the second-largest shareholder in the Las Vegas-based company, behind Light & Wonder, which owns 81% of the social casino developer. (Image: Twitter)Įngine Capital owns 7.4% of SciPlay’s outstanding shares. ![]() Engine Capital is questioning the firm’s talks with Light & Wonder. SciPlay staff at the Nasdaq market site celebrating the company’s 2019 IPO. (NASDAQ:SCPL), pressing the gaming company for an update on its intellectual property (IP) negotiations with Light & Wonder (NASDAQ:LNW). Financial, Gaming Business, Mergers and Acquisitions.Īctivist investor Engine Capital recently sent a letter to the board of SciPlay Corp.
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