Activision Blizzard buys Candy Crush maker for $5.9 billion

Scorpus

TechSpot Staff
Staff member

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.

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wastedkill

TS Evangelist
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...
 
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Adhmuz

TechSpot Paladin
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...
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.
 
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lipe123

TS Evangelist
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.
 
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Hexic

TS Evangelist
I thought Activision and Blizzard were separate?
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.
 

Arris

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

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.
 

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