Activision Blizzard Purchases King Digital Entertainment For $5.9 Billion
Video game conglomerate Activision Blizzard has agreed to purchase King Digital Entertainment, creators of Candy Crush, for $5.9 billion—at $18 a share. The move suggests that Activision Blizzard is interested in expanding their mobile game library with hit titles beyond trading card game Clash of Clans) and Gungho Online Entertainment (Puzzles and Dragons). Although King's main revenue driver for the past 3 years has been the Candy Crush franchise, it's a safe inference that the studio will expand its interests going forward with Activision Blizzards robust IP's already successful on PC and consoles.
Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, “The combined revenues and profits solidify our position as the largest, most profitable standalone company in interactive entertainment. With a combined global network of more than half a billion monthly active s, 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.”
King's investors had previously been wary. The company was unable to replicate the overwhelming success of Candy Crush with newer titles and the stock floundered. There were calls for expansion outside of Candy Crush to ensure the company's longevity. Bringing Activision Blizzard's IP's and the veteran experience of mobile game developers together should signal breakout titles in coming years.
The purchase was announced just after Activision Blizzard released their quarterly sales report. Activision Blizzard's has been booming, with record digital sales and continued franchise success—including the unexpected sales boost from Destiny's The Taken King. And the acquisition of King Digital Entertainment instantly makes Activision Blizzard a global leader in mobile development.
I'm curious to see if they can influence me to install and play mobile.
