Roblox Corporation

History

Roblox Corporation was founded by David Baszucki and Erik Cassel. Baszucki had previously founded Knowledge Revolution, an educational software company, in 1989. With him and Cassel, the company developed Interactive Physics, a 2D physics simulation released in the same year. Knowledge Revolution followed this up with Working Model, a software that simulated mechanical devices. The company was eventually purchased in December 1998 for by MSC Software, where Baszucki and Cassel obtained senior positions. Baszucki was the company's vice president and general manager from 2000 until 2002, when he left MSC Software to establish Baszucki & Associates, an angel investment firm. He and Cassel founded Roblox Corporation in 2004. Working from an office in Menlo Park, California, they began preliminary work on the video game DynaBlocks, which was launched in a beta state later that year. The game's name was changed to Roblox in 2005, and the game was formally released on September 1, 2006.

Cassel died from cancer on February 11, 2013. In December 2013, Roblox Corporation had 68 employees, which it raised to 163 by December 2016. The company secured an investment in March 2017 through a round of funding led by Meritech Capital Partners and Index Ventures. Eyeing international expansion, Roblox Corporation established Roblox International and hired Chris Misner as its president in May 2018. Under Misner, Roblox was launched in Chinese (in partnership with Tencent), German, and French in 2019. By September 2018, Roblox Corporation had hired Dan Williams (previously of Dropbox) to move Roblox from a third-party cloud computing service to a proprietary one. In October 2018, the company acquired PacketZoom, a developer of mobile network optimization software. PacketZoom, including its employees, founder, and chief technology officer Chetan Ahuja, was merged into Roblox Corporation.

A "series G" funding round in February 2020, led by Andreessen Horowitz, raised for Roblox Corporation and valued the company at . By October 2020, Roblox Corporation had begun planning to become a public company, evaluating whether to perform a regular initial public offering (IPO) or use the less common method of a direct listing. Later that month, the company filed with the United States Securities and Exchange Commission (SEC) to prepare an IPO worth , looking to be listed on the New York Stock Exchange (NYSE) with the ticker symbol "RBLX". By this time, the company had more than 830 full-time employees and 1,700 "trust and safety agents". The company acquired Loom.ai, a company that creates 3D avatars from photographs, in December 2020. In January 2021, Roblox Corporation announced that it would pursue a direct listing instead of an IPO. The SEC had also requested that Roblox Corporation change how it reports the sales of its virtual currency, Robux. In the same month, Altimeter Capital and Dragoneer Investment Group led a "series H" round of funding that valued the company at . The NYSE approved the direct listing of Roblox Corporation's class A shares by February 2021. The shares began trading on March 10 that year, with the initial buys giving the company an estimated valuation. In August 2021, Roblox Corporation acquired the online communication platforms Bash Video and Guilded, paying in cash and stock for the latter.

In March 2023, Roblox and Guidewire Software agreed to switch office buildings under sublease agreements, with Roblox moving to the former Guidewire building at Bay Meadows, with 180000 ft2 of office space, and Guidewire moving to the former 80000 ft2 Roblox building near the Franklin Templeton campus. In July 2023, Roblox Corporation rolled out a "Roblox Partner Program" with seven initial developers partnered to create playable Roblox experiences for brands interested in advertising through Roblox's platform as a medium.

In August 2023, Roblox unveiled plans to create an in-game career center, where players can turn up for events, podcasts, and conversations with actual employees. A month later, Roblox laid off 30 employees in its talent acquisition, citing a slowdown in hiring.

Reception

Accolades

Roblox Corporation has been ranked on Pocket Gamer.bizs top lists of mobile game developers, placing sixth in 2018, eighth in 2019, and sixth in 2020. Fortune featured it as one of the best small and medium-sized workplaces in the San Francisco Bay Area, placing it sixteenth in 2019 and fortieth in 2021. In 2016 and 2017, Inc. ranked Roblox Corporation on its "Inc. 5000" list of fastest-growing private companies in the United States. In 2020, Fast Company regarded it as the ninth-most innovative company in the world, as well as the most innovative in the gaming sector.

Criticism

On August 19, 2021, the YouTube channel People Make Games released the results of their investigation into the Roblox Corporation. In their video report, they allege the company exploits young video game developers by taking an outsized share (75.5%) of the revenue made from games on their platform. In a discussion with Axios, Roblox chief product officer (CPO) Manuel Bronstein responded by saying that Roblox intends to give more money to its community developers.

After the report's publication, Roblox asked People Make Games to retract the video. Instead, they released a follow-up video report which further outlined several child safety issues they felt were present in Roblox.

Legal disputes

In June 2016, Cinemark Theatres filed a lawsuit against Roblox Corporation over trademark infringement. The plaintiff cited several user-created games within Roblox that recreated Cinemark locations, including the trademarked branding.

In February 2018, YouTuber Kerstin Hoffmann, known as Keisyo, claimed that Roblox Corporation owed her because the company had stopped her from converting her 42 million Robux balance into real-world money for no given reason. In response, Roblox Corporation stated that she could not transfer her Robux because she had earned them through "fraudulent activities".

In May 2021, an unnamed litigant filed a class-action lawsuit against Roblox Corporation, accusing the company of ripping off players with bogus purchases. Stating "The company's decision to sell first and 'moderate' later has obvious monetary benefit for Roblox, by the time defendant has deleted items from the Avatar Shop and users' inventories, it has already taken its 30% commission from the sale." Roblox Corporation said that they review all content submitted by developers through a multi-step review process before it appears on the platform. In May 2023, Roblox agreed to settle the suit for $10 million, in the form of a Robux refund to any users who bought an item before May 11, 2023.

In June 2021, the National Music Publishers' Association filed a lawsuit against Roblox Corporation for , accusing the company of infringing copyright laws. The complaint states, "Roblox actively preys on its impressionable user base and their desire for popular music, teaching children that pirating music is perfectly acceptable." Roblox Corporation responded to the lawsuit by contending that they "do not tolerate copyright infringement" and expressing an intent to contest the lawsuit. On September 27, 2021, Roblox and NMPA announced they had reached an agreement that "settles claims filed by NMPA members [and] offers an industry-wide opt-in open to all eligible NMPA publishers," settling the lawsuit.

Ruben Sim In November 2021, Roblox Corporation filed a $1.65 million lawsuit against YouTuber Benjamin Robert Simon, also known online as Ruben Sim. The complaint states a breach of contract, "cyber-bullying and harassing Roblox employees and executives" and "posting false and misleading terrorist threats" during the Roblox Developer Conference 2021 which led to it being temporarily shut down. On January 16, 2022, the lawsuit was settled by both parties which required Simon to pay $150,000 to Roblox Corporation. With the lawsuit settled, Simon is permanently banned from accessing Roblox. Due to it being resolved out of court, a legal precedent for other users who may evade IP bans or violate a game's terms of service was not established.

In October 2022, a lawsuit was filed by a parent in the San Francisco Superior Court. The lawsuit alleges that Roblox connected their daughter with online predators, who sexually exploited her, coercing her to send sexually explicit photos to them on Discord and Snapchat, who were also named in the lawsuit.

In August 2023, a class-action lawsuit was brought against Roblox Corporation. The lawsuit alleges that Roblox profited off minors when they bought Robux to participate in third-party gambling rings, violating the RICO act.

Schlep controversy and lawsuit

Main article: Roblox–Schlep controversy

In August 2025, Roblox Corporation issued a cease-and-desist letter to YouTuber Schlep, prominent for conducting sting operations against alleged online predators via the platform. Roblox Corporation's letter stated that the activities of Schlep and other vigilante streamers were a violation of the platform's terms of service, and created an unsafe environment for users. Concurrent with the legal notice, Roblox terminated all accounts associated with Schlep and his group, and IP-banned him from the platform. This has also prompted multiple Roblox-affiliated content creators of the Roblox Video Stars Program to leave as protest. Following the controversy, Roblox Corporation's stock price fell by over 11%, reflecting investor concerns. Schlep later announced that he is planning to countersue Roblox.

The company's actions were met with major backlash from many online communities who viewed Schlep's actions as necessary for community policing. The situation escalated significantly days later and included calls for the CEO to resign and a petition by U.S. representative Ro Khanna. Shortly after, Indonesia said that it began considering blocking Roblox in their country, and Qatar fully blocked Roblox. On August 14, Louisiana Attorney General Liz Murrill filed a child protection lawsuit against Roblox Corporation. The suit alleged that by actively shutting down independent efforts to expose potential dangers on its platform, Roblox was failing in its duty to protect underage users from harm. Roblox responded to the lawsuit on August 15.

References

References

1. (February 18, 2025). "US SEC: 2024 Form 10-K Roblox Corporation.". [[U.S. Securities and Exchange Commission]].
2. Fennimore, Jack. (July 24, 2017). "Roblox: 5 Fast Facts You Need to Know".
3. Takahashi, Dean. (November 19, 2020). "Roblox files for IPO, a first for user-generated game platforms".
4. Gatollari, Mustafa. (March 6, 2020). "'Roblox' Has Been Captivating Players for Over 13 Years, and It All Started With Two Men".
5. Knapp, Alex. (March 14, 2017). "Roblox Has Raised $92 Million To Expand Its Gaming Platform".
6. MCV Staff. (March 15, 2017). "Roblox Corporation snags $92 million investment round".
7. Dickson, Jeremy. (May 28, 2018). "Roblox plots international growth with ex-Apple exec".
8. Perez, Sarah. (May 29, 2019). "Eyeing an entry into China, Roblox enters strategic partnership with Tencent".
9. Ram, Aliya. (April 8, 2019). "Roblox games platform plans European expansion".
10. Knapp, Alex. (September 18, 2018). "How Roblox Is Training The Next Generation Of Gaming Entrepreneurs".
11. Knapp, Alex. (October 11, 2018). "Social Gaming Platform Roblox Acquires Mobile Performance Startup PacketZoom".
12. (October 1, 2020). "Exclusive: U.S. gaming platform Roblox prepares to go public – sources".
13. Sen, Anirban. (November 19, 2020). "Roblox IPO filing shows revenue surge as gaming thrives during pandemic".
14. Valentine, Rebekah. (November 20, 2020). "Roblox files for IPO".
15. Takahashi, Dean. (December 14, 2020). "Roblox acquires Loom.ai for realistic avatars and delays IPO to 2021".
16. (January 6, 2021). "Gaming site Roblox valued at $30 bln, plans direct listing".
17. Van Allen, Eric. (February 22, 2021). "Roblox to begin trading shares in March".
18. Chandler, Sam. (February 22, 2021). "Roblox (RBLX) direct listing set for March after two IPO delays".
19. Grothaus, Michael. (March 10, 2021). "Roblox goes public: What to know as RBLX stock debuts on the NYSE".
20. Takahashi, Dean. (March 10, 2021). "Roblox goes public at $41.9 billion valuation in direct listing".
21. Takahashi, Dean. (August 11, 2021). "Roblox acqui-hires Jim Greer's Bash Video platform".
22. Francis, Bryant. (August 16, 2021). "Roblox now owns online communications platform Guilded".
23. (June 30, 2021). "Form 10-Q". Roblox Corporation.
24. Naidu, Pawan. (March 3, 2023). "Roblox subleases larger headquarters in San Mateo". The Real Deal.
25. Lee, Alexander. (July 11, 2023). "How Roblox's Partner Program is helping the platform assert its legitimacy as a marketing channel".
26. Vargas, Anthony. (August 7, 2023). "Through The Portal: A Peek Inside Roblox's Partner Program".
27. Phillips, Tom. (August 11, 2023). "Roblox to begin holding job interviews within Roblox". Eurogamer.net.
28. Liao, Rita. (September 21, 2023). "Roblox cuts 30 on talent acquisition team as hiring slows".
29. (August 21, 2018). "Top 50 Mobile Game Developers of 2018".
30. (October 1, 2019). "The Top 50 Mobile Game Makers of 2019".
31. (September 8, 2020). "The Top 50 Mobile Game Makers of 2020".
32. (February 28, 2019). "The 70 Best Companies to Work For in the Bay Area".
33. (2021). "Working at Roblox".
34. (2016). "Inc. 5000 2016".
35. (2017). "Inc. 5000 2017".
36. (2020). "The World's 50 Most Innovative Companies in 2020".
37. (2020). "The 10 most innovative gaming companies in 2020".
38. (August 19, 2021). "On Roblox, Kids Learn It's Hard to Earn Money Making Games".
39. (October 11, 2021). "Here's everything you need to know about Roblox, the gaming megaplatform making its own rules". PC Gamer.
40. (August 22, 2021). "Roblox is tricking kids into underpaid game development".
41. (August 19, 2021). "It's Shocking Just How Shady Roblox Actually Is".
42. (October 15, 2021). "Roblox outlines future for the virtual platform". Axios.
43. (December 14, 2021). "Roblox accused of being an unsafe environment for children". Eurogamer.
44. (December 15, 2021). "Roblox is facing accusations of being unsafe for children". USA Today.
45. (December 13, 2021). "YouTubers Are Making Roblox Sound Even Shadier Than Before".
46. Cushing, Tim. (June 22, 2016). "Cinemark Files Trademark Infringement Lawsuit Against Roblox Over User-Generated Content".
47. Hood, Vic. (February 27, 2018). "YouTuber claims Roblox owe her $150,000 – they disagree".
48. Burnson, Robert. (May 25, 2021). "Roblox Accused in Suit of Cheating Kids With Bogus Purchases". [[Bloomberg News]].
49. "Doe v. Roblox".
50. (October 6, 2023). "Roblox $10 Million Content Deletion Settlement Gets Final Nod".
51. "Doe v. Roblox Corporation - Home".
52. Steele, Anne. (May 26, 2021). "Music Publishers Sue Roblox for Letting Game Creators Use Unlicensed Songs".
53. (June 9, 2021). "COMPLAINT FOR DIRECT COPYRIGHT INFRINGEMENT AGAINST DEFENDANT ROBLOX CORPORATION".
54. Spangler, Todd. (June 10, 2021). "Roblox Responds to Music Publishers $200 Million Copyright-Infringement Lawsuit".
55. Aswad, Jem. (September 27, 2021). "Roblox and National Music Publishers Association Settle $200 Million Copyright Lawsuit".
56. "Roblox's Pedophile Problem".
57. (November 25, 2021). "Roblox Sues YouTuber For Posting 'False And Misleading Terrorist Threats'".
58. (November 23, 2021). "ROBLOX CORPORATION v. BENJAMIN ROBERT SIMON, a/k/a RUBEN SIM - COMPLAINT".
59. Carpenter, Nicole. (November 24, 2021). "Roblox sues banned 'cybermob leader' for terrorizing the platform, its developers".
60. Grimshaw, Jack. (January 24, 2022). "US court bans Youtuber accused of harassing 'Roblox' staff and terrorist threats".
61. "21190191-roblox-v-simon-settlement/".
62. (January 22, 2022). "Judge's order slaps Roblox player with permanent game ban".
63. Belanger, Ashley. (October 6, 2022). "Roblox sued for allegedly enabling young girl's sexual, financial exploitation".
64. "C.U. v. Roblox Corp.".
65. (August 16, 2023). "Roblox Accused of Concocting Illegal Gambling Ring for Minors".
66. "Colvin v. Roblox Corporation".
67. Gilson, Grace. (August 16, 2025). "'Schlep,' self-appointed watchdog with Yiddish name, is banned from gaming platform".
68. Liddell, James. (August 14, 2025). "'Predator hunter' YouTuber hit with cease and desist letter from Roblox CEO".
69. Murray, Conor. "Roblox Child Safety Controversy Grows: Louisiana Sues Gaming Platform".
70. Liddell, James. (August 15, 2025). "Louisiana AG sues Roblox and calls it 'perfect place for pedophiles'".
71. (August 15, 2025). "Roblox Responds to Louisiana AG Lawsuit".