Robloxs Nuts And Bolts
Nov 19 (Reuters) The children's gaming platform Roblox is preparing to announce an U.S. stock market listing by the end of the year.
Here are some details about the company.
WHAT IS IT?
Roblox is a wildly popular website for kids, with an estimated 164 million monthly active users, according to industry blog RTrack.
Roblox is used by three-fourths (or more) of American children between 9-12 years old. This was the conclusion of an advisor to the company on November. 5. Minecraft
The platform, which is largely composed of user-generated content, offers software downloads that allow you to create games and play them online.
It doesn't require that you be 18 or older to sign up, which is different from other social media and gaming platforms.
Roblox aims at younger kids and, like Minecraft, Fortnite and Apex Legends it has seen a massive increase in the number of children playing at home during the coronavirus pandemic.
Roblox claims that its users have spent nearly 37 billion hours on the platform to date since 2008.
In July, the company announced that its strong developer community is on track for making $250 million by 2020. This is an increase of $110 million in 2019.
"Adopt Me!," the most played game on the platform, received 10 billion visits in the first half of 2020. Piggy, another popular game, received more than 5 billion visits.
How does it work?
Roblox allows players to access the platform for free and they can earn money by buying premium plans or Robux. Robux is a currency that can be used to buy outfits and other items that can enhance the user experience.
To play with the Lego-like characters on their mobile devices or computers, users will need to download Roblox. This app allows players to join chats or groups to interact with other people.
Game developers must download the Roblox Studio extension to create games for the platform.
Creators can earn money from their games by charging players to play the game and providing in-game purchases.
What are the SAFEGUARDS?
Roblox as well as other websites, offers account control that allows parents to restrict how their children interact with each other. Roblox also provides additional control for parents such as limiting the kid to playing games that have been pre-tested and curated.
IPO PLANS
Sources tell Reuters that Roblox is considering a traditional IPO or an open market listing for its listing.
Earlier this year, Roblox raised $150 million from venture capital investors including Andreessen Horowitz. This valued the company at $4 billion.
HOW IS IT REGULATED?
Roblox like many other online platforms is not subject to U.S. regulation. The only exceptions are fraud against users by the company and misuse of data on users under 13.
