Activision Blizzard to Acquire Candy Crush Maker King Digital Entertainment for $5.9 Billion
Videogame maker and industry giant Activision Blizzard Inc. said on Monday that it will buy Candy Crush Saga creator King Digital Entertainment for $5.9 billion, strengthening its games portfolio to include offline mobile games — most notable of which is the Candy Crush Saga franchise.
The deal gives Activision Blizzard, a household name in console and PC videogames with hit franchises such as Call of Duty, World of Warcraft, StarCraft and Hearthstone, a beachhead in the fast-growing business of mobile games. The combined portfolio will encompass at least 10 of the world’s most iconic videogame properties.
Activision-Blizzard will pay $18 in cash per King share, a premium of 18 percent to King’s closing price on Monday.
The addition of King Digital’s interactive, mobile videogame library serves to solidify Activision Blizzard’s position as a global leader in interactive entertainment across mobile, console and PC platforms.
In a statement, Activision Blizzard Chief Executive Bobby Kotick said that: “With a combined global network of more than half a billion monthly active users, our potential to reach audiences around the world on the device of their choosing enables us to deliver great games to even bigger audiences than ever before.”
A push for mobile
Activision Blizzard’s announcement is the latest in a growing trend of video game publishers shifting their attention to the highly lucrative digital space and away from the physical sale of gaming titles.
Further, the growing adoption of mobile tablets and smartphones, particularly in Southeast Asia has also impacted the videogame industry. Earlier this year, Nintendo announced that they too will shift their attention into developing mobile games for smartphones and away from their traditional strengths in home-based console gaming.
The acquisition will mark Activision’s second largest deal since acquiring Blizzard Entertainment. With King’s known track-record of creating widely popular gaming titles for social media platforms and mobile devices, Activision Blizzard will rely on their expertise to help them hammer out a foothold in this digital landscape.
Candy Crush Saga, King Digital’s most popular mobile game, is poised to break $4 billion in total digital revenues by December of this year.
King Digital Entertainment will continue to be led as an independent operating unit by Chief Executive Riccardo Zacconi, Chief Creative Officer Sebastian Knutsson and Chief Operating Officer Stephane Kurgan.
In the same statement by Kotick, he said that ““Riccardo, Sebastian, and Stephane are some of the best minds in the business, and we have long-admired King for consistently creating incredibly fun, deeply engaging free-to-play games that capture the imaginations of players across ages and demographics. Activision Blizzard will provide King with experience, support and investment to continue to build on their tremendous legacy and reach new potential. We share an unwavering commitment to attracting and developing the best talent in the business, and we are excited about what we will be able to accomplish together.”
Banner photo from user m01229 on Flickr.
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