Skillz disputes Tether Studios contract termination, files suit in Delaware court

Published 02/09/2025, 21:14
Skillz disputes Tether Studios contract termination, files suit in Delaware court

Skillz Inc. (NYSE:SKLZ) reported that on Friday it received notice from Tether Studios, LLC and Tether Games, Inc. regarding the termination of all agreements between the two companies, with the termination intended to take effect on Monday. Skillz stated in a press release that it believes the termination notice is invalid and constitutes a breach of Tether’s contractual obligations.

Under the agreements, Tether licensed Skillz’s software development kit to provide monetization services for Tether-developed games, with both companies sharing revenue generated from user entry fees. The agreements allow either party to terminate with written notice for convenience or for cause. Tether’s notice stated the termination was for convenience, but also asserted grounds for termination for cause effective September 28, 2025, if the convenience termination is not upheld by a competent tribunal.

Certain agreements restrict the removal of two Tether games, Solitaire Cube and 21 Blitz, from the Skillz platform for at least 18 months following termination. During this period, Skillz may, but is not required to, continue hosting paid competitions for these titles.

Following receipt of the notice, Skillz filed a lawsuit on Monday in the Court of Chancery of the State of Delaware seeking injunctive and declaratory relief related to Tether’s actions. The company is also disputing Tether’s stated grounds for termination for cause.

Skillz indicated it intends to defend its position in court, but stated it cannot provide assurances regarding the outcome of the claim or its potential impact on the business.

This information is based on a statement issued in a recent SEC filing.

In other recent news, Skillz Platform Inc. reported its second-quarter earnings for 2025, highlighting a significant increase in revenue. The company achieved $27 million in revenue for Q2, reflecting an 8% year-over-year growth. Despite the revenue increase, Skillz reported a net loss for the quarter. The results have generated optimism among investors regarding the company’s future potential. There were no updates on mergers or acquisitions in the recent announcements. Analyst firms have not provided any new upgrades or downgrades for Skillz following the earnings release. The company’s performance and recent developments continue to attract attention from the investment community.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.