Game creator King Digital recently sold their universal game Candy Crush for a very sweet $5.9 billion. The company who have acquired Candy Crush are Activision Blizzard, and this latest addition to their portfolio will be a valuable asset, along with their existing popular games such as Call of Duty and World of Warcraft.
The move comes as Activision Blizzard are hoping to improve their mobile gaming presence; the company are currently better known for being at the forefront of PC and console gaming. King Digital, on the other hand, have an excellent track record in mobile gaming, so this latest move could be a shrewd one considering the company has 474 million active monthly users on their mobile games. That being said, Activision Blizzard have paid a rather large price for the privilege of becoming the new mobile gaming leader.
This latest development has certainly highlighted that Activision Blizzard has historically lagged behind when it comes to adapting their games to meet consumer demands and desires for mobile programming technology.
With every deal come terms and conditions – and these can be revealing.
As part of the deal, Activision Blizzard will pay $18 per share, which is $4.50 lower than King Digital’s IPO price last year.
Once the acquisition comes into full force and is finalized, King Digital will operate as an independent unit within Activision Blizzard. CEO Riccardo Zacconi has admitted in a statement that he believes the deal will position the company well for its next phase – presumably mobile gaming.
It is expected that the deal will be done and dusted by early 2016. While some are skeptical about the transaction and how this will affect the mobile gaming industry (if any changes are made at all), it seems to have been a savvy and shrewd move in terms of competition, reputation, and future potential.
I would love to hear your thoughts on this acquisition; do you think it was a good move for Activision Blizzard? Do you think this will change the way others view them now? Will they now be seen as a market leader in the mobile gaming industry? Leave a comment below!