King has made it clear to us that they believe the only way we can support them is by subsidizing their UAC spend with ad credits. King's initial request for ad credits was a pretty aggressive one and asked that we match 75% of their UAC spend with ad credits ($3 of ad credits for every $4 of their own UAC spend). King is currently spending about $40M annually on UAC with a goal of reaching full payback within 12mos.

King will like us to subsidize their UAC spend with ad credits so that they can significantly increase their spend budget and capture incremental revenues without compromising the ROI from their direct spend. In their model, they referenced how they can theoretically scale up their annual UAC spend up to $80M if we can help unlock $60M worth of ad credits.

Additionally, the ABK CEO met with Don Harrison at GDC last week and agitated over Play rev share. I think we need to move this along faster/in parallel with the overall Hug approval and be prepared to push this through as a one-off if we need to.

I'm a bit nervous about tying our credits to Play spend, in the event that leaks and we are accused of unfair treatment. It's been a safer concept for me for us to focus on campaigns/launches — i.e., if the partner does something big that we want to support, we co-invest.