In a very surprising move announced Monday November 2nd, Activision Blizzard (ATVI), makers of massively successful gaming titles that include Call of Duty and Skylanders purchased all outstanding King shares for $18.00 cash per share (a 20% premium over the (KING) October 30th closing share price) to take control of their popular mobile gaming properties including Candy Crush.
Even though KING has developed more than 200 titles and offers games in 200+ countries, the 5.9 Billion dollar price tag shocked many gaming insiders. While Candy Crush and its sequel have generated a ‘sodalicious‘ number of sales, their other titles like: Farm Heroes, Pet Rescue and Bubble Witch have not generated nearly as much heat.
King reports having 330 million average monthly unique users across all of its platforms, but some experts wonder if there is much synergy between the audiences of their titles and the powerhouse brands already in the Activision Blizzard lineup. King does have game studios in Stockholm, London, Barcelona, Berlin, Singapore and Seattle, with additional offices in San Francisco, Malta, Seoul, Tokyo, and Bucharest so the global reach of the brand is unquestioned, but at 5.9B the fact that the buyer reached a bit deeper into its pockets than expected to acquire King is not really in question either.
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