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Activision Blizzard buys Candy Crush maker for $5.9 billion

By Scorpus ยท 13 replies
Nov 2, 2015
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  1. Activision Blizzard, best known for popular gaming franchises such as Call of Duty and World of Warcraft, has purchased the creator of Candy Crush Saga, King Digital Entertainment, for a whopping $5.9 billion.

    The huge deal increases Activision Blizzard's already sizable gaming portfolio with a collection of extremely popular web and mobile games, including Candy Crush, which King say are enjoyed by 474 million monthly active users.

    More than a third of King's revenues are from Candy Crush Saga alone, although the company did report revenues of $2.1 billion over the last 12 months, with profits totalling $600 million. To purchase the company, Activision Blizzard are paying $18.00 per share and a 26 percent premium on King's market capitalization of $4.7 billion.

    Bobby Kotick, CEO of Activision Blizzard, says the deal "[solidifies] our position as the largest, most profitable standalone company in interactive entertainment.". King CEO Riccardo Zacconi had similarly positive things to say, noting that the acquisition "will bring clear benefits to our players and employees".

    The purchase of King for this price is a curious move by Activision Blizzard, as there is no guarantee the company will be able to maintain such high levels of success into the future. Other mobile developers, such as Rovio (creators of Angry Birds) and OMGPOP (Draw Something) have released hugely successful games only to see revenues drop significantly after gamers jump to the next big mobile game.

    The deal also makes some other recent acquisitions seem like extremely good value, such as Disney's $4.06 billion purchase of Lucasfilm in 2012, and the company's 2009 acquisition of Marvel Entertainment for $4 billion.

    Permalink to story.

  2. tomkaten

    tomkaten TS Maniac Posts: 250   +165

    Next Blizzard game: Cherrycraft. Build pear bunkers, use apples to destroy your puny enemy and march to victory !!! All yuor fruits are belong to us !
    Hexic, H3llion and ikesmasher like this.
  3. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,286

    Call of Candy: Modern Crush.
    Hexic, Adhmuz, yRaz and 1 other person like this.
  4. Xtreme gamer

    Xtreme gamer TS Enthusiast Posts: 64   +19

    I thought Activision and Blizzard were separate?
  5. That is seriously ridiculous.
    Darth Shiv, dms96960 and Capaill like this.
  6. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    It must be nice paying a price premium for a company that earns most of its profits from 1-3 products. I seriously can't see how the candy crush maker is worth $5.9billion... specially when they make $600mill profit...
    H3llion likes this.
  7. Adhmuz

    Adhmuz TechSpot Paladin Posts: 1,914   +699

    I know where your coming from, a free to play game worth $5.9 Billion, however $600 Million profit over the next 10 years with room to grow will get them a return. Who knows what Activision has planned with the company, Candy crush mini games inside WoW, CoD, ect. It's a shame really, this money should be going to develop real games, not these crumby time wasters.
    wastedkill likes this.
  8. lipe123

    lipe123 TS Evangelist Posts: 792   +323

    I cant even read the word activision without throwing up in my mouth a little. That company just pushes out content with non support or fixes and dont care about anything past the 6mnth mark.

    As long as they made a decent profit with the hype machine they're happy.
    Arris likes this.
  9. Hexic

    Hexic TS Evangelist Posts: 495   +319

    In 2008, Activision merged with Vivendi Games - a french gaming developer and publisher, who previously owned Blizzard.

    Now, since the merger of those two giants, it's 'Activision-Blizzard', not Activision anymore.

    These guys are the biggest gaming developer and publisher in the world.
  10. Enemy jelly bean spotted, open fire!!!!
  11. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,286   +4,939

    Nothing can hide from Skittles!
  12. Arris

    Arris TS Evangelist Posts: 4,689   +423

    I can just imagine in World of Warcraft, 40 man raid bosses dropping candies when conquered instead of items :p
  13. ProjectAlice

    ProjectAlice TS Rookie

    Lol I don't know what's up with candy crush, but doin that make me lose as a player. lucky, I have honeyday blitz 2. It's better anyway.
  14. Heli Thakkar

    Heli Thakkar TS Rookie

    I don't think that candy crush have this level of market value.

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