Video games publisher Activision Blizzard has announced the acquisition of Candy Crush Saga publisher King Digital Entertainment for an amount of $5.9 billion.
The purchase price represents a 20% premium over King’s closing price on 30 October 2015.
— King (@King_Games) November 3, 2015
Further, the press release stated, “The $18.00 per share purchase price implies a 20% premium over King’s 30 October 2015 closing price, a 26% premium over King’s 30 October 2015 enterprise value (which excludes net cash), a 23% premium over King’s one month volume weighted average price per share and a 27% premium over King’s three month volume weighted average price per share.” The acquisition was unanimous and was passed by the Board of Directors of both the companies under Irish laws.
The acquisition gives Activision a huge chunk of mobile gaming audience, the only sector the company wanted to tap for a long time. According to thinkgaming, Candy Crush Saga itself gets a total of 68,810 installs in a day with a daily revenue estimate up to $911,040. The game is ranked third in the ‘grossing games section’ and 23rd in the free games section on Android Google Playstore.
Activision already owns the biggest names in the games industry like World of Warcraft, Hearthstone: Heroes of Warcraft, StarCraft, Diablo, Guitar Hero along with more than 1000 titles under their name. Now, the acquisition of King Entertainment will give them the highest played game on social networking website Facebook (Candy Crush Saga) and also the highest played game in the United States (Candy Crush Soda Saga).
The former Candy Crush franchise owners have tried not to lean on the game since 2012. Nevertheless, the application reaches a massive crowd and still counts for one third of company’s profit. The question that comes up, is ‘Why?’ The game might have the monopoly now but it could decrease eventually like Rovio’s Angry Birds. Angry Birds was launched in 2009 and was a huge success, but eventually the game went through a downfall and all its later versions failed to put an impact on the mobile-game market. How many of us know about Angry birds Starwars, Angry Birds cart racing etc?
The only thing uncertain is a new update in the game; Activision might let the game be & cash on it or will it update the game to keep the pace of ‘Gameddiction’ intact.Category Business News Social