ZombieMedia/Entertainment

What Happened to Skillz?

Ticker: SKLZSPAC Year: 2020Merger: 2020

Return

-99.7%

Current Price

$0.15

Peak Price

$46.3

Trust Size

$690M

Summary

Mobile gaming platform that promised to revolutionize competitive gaming. Cathie Wood loaded up on shares. The stock lost 99.7% as the company never achieved real user growth and was accused of inflating metrics.

What Happened

Skillz went public via Flying Eagle Acquisition Corp in December 2020. It was one of ARK Invest Cathie Woods favorite SPAC picks. The platform let mobile gamers compete for prizes, but user acquisition costs were astronomical — the company spent more on marketing than it earned in revenue. A short report from Wolfpack Research alleged fake users and inflated metrics. After hitting $46, shares collapsed to under $0.20 with a 1:20 reverse split to avoid delisting.

Key People

Andrew ParadiseCEO & Founder— Sold $100M+ in shares near the peak
Cathie WoodMajor Investor— ARK loaded millions of shares, rode it to the bottom

Timeline

2020-12

SPAC merger completed

2021-02

Stock peaks at $46

2022-06

Short seller report alleging fake metrics

2023-03

1:20 reverse split

2024-01

Stock under $0.20, functionally dead

Risk Indicators

⚠ïļ Reverse Split⚖ïļ Class Action Lawsuit