Activision Blizzard acquires creator of Candy Crush Saga for $5.9 billion
It is a big news in the gaming world today, as one of the biggest gaming companies on the earth has just bought another ruler of games in a deal worth multiple billions of dollars.
Our Spiderman game creator and the studio behind Call of Duty, Diablo and World of Warcraft, Activision Blizzard has just bought the creator of “the most annoying thing on Facebook”, Candy Crush Saga for a staggering $5.6 billion. The company reported the acquisition of King Digital Entertainment yesterday along with its quarterly reports. CEO Kotick believes deal will create “the largest, most profitable company in interactive entertainment”.
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Activision Blizzard acquires creator of Candy Crush Saga
Activision Blizzard is going to purchase the outstanding shares of King Digital Entertainment for the sum mentioned above. The price is a 20 percent premium over the closing price for King Digital Entertainment shares on October 30 and a 23 percent premium over its one month weighted average ultimately coming to a per share price of $18.
By buying King, Activision says that they will become one of the biggest entertainment networks on a global scale by having around half a billion online users every month in 196 countries. This seems a really big deal as King Digital Entertainment is one of the most successful gaming platform companies considering that Candy Crush alone was downloaded around 500 million times. That is a huge number of users to bag in the Activision Blizzard community. Despite King’s huge success with Candy Crush Saga considering Candy Crush Saga and Candy Crush Soda Saga are two of the top five highest-grossing mobile games in the US, the company had a little luck with its other titles like Farm Heroes, Pet Rescue and Bubble Witch. The company also saw a decrease in revenue by $45 million in the fiscal 2015 quarter, which is 27 percent less than the revenues generated in the first quarter of 2015.
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Activision Blizzard CEO Bobby Kotick believes that the combined revenues and profits will make the company the largest most profitable standalone company in the interactive entertainment domain.
“We are very much looking forward to working with Activision Blizzard. We have two teams that, together, will have an amazing footprint, innovative technology, and leadership across platforms, and unique, established IPs to delight one of the largest networks of players in the world.” – King’s CEO said.
The decision was unanimous among the board of directors at Activision Blizzard and the acquisition is expected to get completed in spring, 2016. King Digital entertainment will continue to be run by its present owners.