Latest News  

Candy Crush creator, with Bucharest office, bought for 5.9 bln. USD

Activision Blizzard is purchasing King Digital, maker of the popular mobile game Candy Crush, for a total equity value of USD 5.9 billion. King also has an office in Bucharest.

2015-11-03 16:19:21

Activision Blizzard will pay USD18 per share, nearly a 20% premium over King's recent price, according to Reuters and Business Insider. The deal is all cash.

ABS Partners CV, a unit of Activision Blizzard, will acquire King shares for USD18 each in cash, representing a premium of 16 percent to King's closing price on Monday.

The addition of King's mobile games will position Activision as a global leader in interactive entertainment across mobile, console and PC platforms, Activision said in a statement.
Video game publishers are shifting to the lucrative digital business from physical sales of games as consumers shift from consoles to playing on smartphones and tablets.

The fast-growing mobile gaming segment is expected to generate more than USD36 billion in revenue by the end of 2015, according to Activision.

Activision Blizzard Chief Executive Bobby Kotick told Reuters that buying King will help broaden the reach of its games and expand into new demographics, adding that 60 percent of King's players are female and that no gaming consoles or hardware, besides a phone, is needed to play King's games.
"You have such broad reach. This is a fantastic opportunity for us to create compelling content for new demographics," Kotick said.

Activision, which owns popular game franchises such as "World of Warcraft," "Call of Duty," and "Diablo," said the deal gives the combined company more than 500 million monthly active users across the world and would add to Activision's estimated 2016 adjusted revenue and earnings by about 30 percent.
Dublin, Ireland-based King will continue to operate as an independent operating unit led by Chief Executive Riccardo Zacconi.

Zacconi told Reuters that Activision appealed to him because of the company's expertise in building long-lasting franchises.
King, which went public last March, has been struggling to boost bookings - an indicator of future revenue.
The deal, expected to be completed by spring 2016, is subject to approval by King's shareholders and the Irish High Court, and clearances by antitrust authorities.
Activision said it will use USD3.6 billion of offshore cash and borrow the rest from Bank of America Merrill Lynch and Goldman Sachs Bank as incremental lenders.

Activision also reported third-quarter earnings of 17 cents per share, compared with a loss of 3 cents a year earlier. Excluding items, it earned 21 cents per share. Revenue rose 31 percent to USD990 million. Analysts had expected earnings of 15 cents a share, on revenue of USD950.4 million.

While the acquisition still has to be approved by King's shareholders and cleared by relevant antitrust authorities, the sale was unanimously approved by the boards of both Activision and King. The sale is expected to be completed by next spring.

With the acquisition, Activision Blizzard will add two of the five highest-grossing US mobile games to its already formidable war chest of intellectual properties, including "Call of Duty," "World of WarCraft," "StarCraft," "Hearthstone," and "Guitar Hero."

Here's the statement from Bobby Kotick, CEO of Activision Blizzard:
"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 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."

The purchase is a major signal by Activision that it plans to move more aggressively into mobile gaming. As of the company's second-quarter earnings, 54% of its net revenue came from console games, 21% from online, and 14% from PC gaming, with just 5% coming from mobile and other sources.

That should change. King Digital reported USD490 million in second-quarter revenue in August, according to The Wall Street Journal. All of that is from web and mobile games.

Though Candy Crush has been a rousing commercial and popular success since its launch in 2012, King has struggled to release another title that even comes close to the puzzle game's popularity.
The app accounts for a third of King's revenues. Revenue from Candy Crush is declining, however, reflecting the game's waning popularity. King posted a 28% drop in net profit in the second quarter, owing to an 18% fall in revenue.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Atos ranked in Top Five for Managed Security Services, Worldwide by Gartner

Atos, a global leader in digital transformation today announces that it has been ranked amongst the top 5 global players in Managed Security Services (MSS) in terms of 2017 market share revenue, according to th

 Read Full article »
Endava has been selected as an official AWS Well-Architected partner

Further strengthening its partnership with Amazon Web Services, Endava reinforces its Cloud services expertise and capabilities becoming an AWS Well-Architected Partner, the company announced.

 Read Full article »
Smartree Romania has a new operational director

Smartree Romania, providing HR services on the Romanian market names Anamaria Borza as the new operational director of the company, effective July, 1 this year. The new manager of Smartree team occupied the pos

 Read Full article »
ABSL Romania: Sibiu, a continuously evolving market, with great potential

Sibiu is a market with huge potential and constantly expanding, is one of the conclusions from "Outsourcing in 2018. Best Practices in Technology Adoption" conference, which was dedicated to the local business

 Read Full article »
Accenture assigns 200 mln. US dollars to digital age-focused education, training and skills initiatives in the next 3 years

Supporting its vision to improve the way the world works and lives, Accenture (NYSE: ACN) is committing more than 200 million US dollars over the next three years to help equip people around the world with job

 Read Full article »
Oracle: Customer connection missing as manufacturers yet to produce rewards from industry 4.0

Research of global manufacturers developed by Oracle with research company Coleman Parkes shows initial Industry 4.0 focus has been on internal changes rather than removing supplier, distributor and customer si

 Read Full article »
Nine solutions for smart cities delivered at Code4Cluj hackathon of Endava

The Code4Cluj hackathon organized by Endava at Cluj-Napoca between 18-20th of May generated 9 innovative projects meant to solve the problems faced by the community and citizens of Cluj.

 Read Full article »
Zitec's digital marketing division registered an increase of over 40 per cent last year

Zitec, a major provider of business solutions, digital services and personalized technology products in Romania, announced it registered an increase of over 40 per cent in the digital marketing segment in 2017,

 Read Full article »
Fab Lab Iasi issues the Report on Coworking in Central and Eastern Europe

This report was conducted by the PIN Maps teams (Iasi's modern office map, an impact initiative for the IT & Outsourcing industry) and Fab Lab Iasi (a 700 sqm coworking space, opened in 2017).

 Read Full article »
CBRE: the first two buildings in Timpuri Noi Square are leased over 90 per cent

CBRE announced three new tenants in TN Offices 1 and TN Offices 2 of Timpuri Noi Square, reaching over 90 percent take-up of the first two buildings in this office project.

 Read Full article »
 
 
MOST READ ARTICLES
» Committed to growth
» The Outsourcing industry announces its...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Zitec's digital marketing division reg...
» PwC: The competitive advantages of Rom...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Luxoft expands Asia Pacific presence w...
» Olga Botusan, Stefanini: There is a hu...
» How giving back pays dividends for com...
» How does leadership look today?
 
EDITOR CHOICE
Andrei Romanescu CEO, VEEAM, on the importance of people skills and leadership forming

Within the recently ended OT Learning & Development roundtable edition, Andrei Romanescu CEO, VEEAM stated that he trends of the current and following years underline the importance of people skills and leaders

 Read Full article »
OT Learning & Development: About capitalizing on self-willingness to reach performance

How to succeed in reaching the young and the valuable employees and wining their hearts and minds, so they will forever be committed to gain knowledge, evolve in profession and build a strong career inside the

 Read Full article »
OT Learning & Development now, about digital transformation, facilitating a culture of change and innovation

Some trends are here to stay, while some other may not. How about gamification, chatbots, microlearning, data analytics, mobile learning, augmented reality and others? Today's edition of OT Learning & Developme

 Read Full article »
The need of the industry to stay effective and relevant

In the current context of machinery and AI helping on operational processes of a company, with extended applicability in terms of capabilities, the digital context in which professionals, organizations and busi

 Read Full article »
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events