• Gaming Giant Activision Blizzard Acquires King Digital Entertainment for $5.9 Billion



    The gaming giant, Activision Blizzard, recently announced an agreement to purchase all outstanding shares of Candy Crush Saga developer, King Digital Entertainment, in a deal that is worth roughly $5.9 billion. The news was announced on both the Activision and King Digital websites and indicates a daring move for the established console game maker. Activision, until now, seems to have only lightly dabbled in the mobile space, where much of its efforts focus on AAA titles including “Call of Duty.”

    Activision is set to pay roughly $18 per share as part of the agreement, which is much less than the $22.5 0 per share that King was trading at when it went public last year. The stock was struggling on concerns that King wasn’t able to replicate the success it saw with Candy Crush Saga, which was an all-time top-grossing freemium app that took mobile and Internet platforms by storm back in 2012.

    At the time, in-app Candy Crush payments drove $1.4 billion in revenue for fiscal 2014. While users are still conducting micro-transactions nowadays, the income is on the decline at $206 million for the quarter ending in June. King’s Candy Crush Soda follow-up is currently ranking as a top-five app but revenues aren’t anywhere near those that were seen by its predecessor. The company’s profits in the most recent quarter ended up dropping 28% year-over-year. The company’s acquisition by Activision is a smart move that the company will likely benefit from.

    As of right now, it remains unclear how Activision plans to leverage the mobile developer’s intellectual property, though representatives from both companies were upbeat about news of the acquisition.

    The transaction is expected by Spring of 2016, much of which is pending on approval of King’s shareholders and the Irish High Court.

    Are any of you excited about the acquisition and what could come as a result of it? Share your thoughts below.

    Source: Activision (Investor), King Digital (Investor)
    This article was originally published in forum thread: Gaming Giant Activision Blizzard Acquires King Digital Entertainment for $5.9 Billion started by Akshay Masand View original post
    Comments 1 Comment
    1. Oniszczak's Avatar
      Oniszczak -
      Wow, Disney only paid $4 Billion for the Star Wars franchise. Really puts it in perspective.
  • Connect With Us

  • Twitter Box

  • Facebook