Activision Blizzard has acquired King, creator of ‘Candy Crush’, for $5.9bn. This news confirms rumors of last week that suggested Activision Blizzard was speaking with King regarding a deal. Activision Blizzard’s acquisition of the creator of mobile games such as ‘Candy Crush’ and ‘Bubble Witch Saga’ will boost Activision’s profile on a mobile platform, currently dominated by the creator of Clash of Clans, Supercell.
Activision Blizzard acquires mobile game developer King for $5.9 billion
Overview
Activision Blizzard, the publisher behind popular titles such as Call of Duty and World of Warcraft, has purchased mobile game developer King for $5.9 billion. The acquisition will diversify Activision Blizzard’s business into mobile gaming, which has become a quickly growing sector in the gaming industry.
The Details
The all-cash deal will see Activision Blizzard pay $18 per share for King. This is a 20% premium on King’s closing price on October 30, 2015. The purchase price represents a significant premium on the initial public offering price of $22.50 per share that King launched with in March 2014.
What It Means for Activision Blizzard
Activision Blizzard’s acquisition of King gives the company access to the company’s portfolio of mobile games, including Candy Crush Saga, Farm Heroes Saga, and Bubble Witch Saga. This acquisition will allow Activision Blizzard to enter the mobile gaming market, which is currently dominated by companies like Supercell and King themselves. The acquisition will also significantly expand Activision Blizzard’s user base, which currently stands at around 500 million gamers.
What It Means for King
The acquisition will enable King to benefit from Activision Blizzard’s extensive experience in the gaming industry. King has struggled in recent years, with profits declining as players move towards other mobile games. Activision Blizzard’s financial resources and development capabilities are expected to help revive King’s fortunes.
Reaction from Industry Experts
The news of the acquisition has been met with mixed reactions from industry experts. Some have praised the acquisition, saying that Activision Blizzard is diversifying its business by expanding into mobile gaming. Others have criticized the deal, saying that it is too expensive and that Activision Blizzard could have built its own mobile gaming portfolio instead of buying King.
Conclusion
The acquisition of King by Activision Blizzard represents a significant move by the company to enter the rapidly growing mobile gaming market. The deal is expected to provide significant benefits to both Activision Blizzard and King.