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
Stefanini officially launches the office at Chisinau

IT solutions provider Stefanini announced it officially launched its office at Chisinau, in the presence of local representatives such as Sabin Gîrlea, Operations Director for Application Development division

 Read Full article »
Computaris Romania hiring over 30 engineers for Bucharest site

Computaris Romania has achieved its Q1 2017 plans to hire more than 30 software engineers, exceeding 100 people at its Bucharest site.

 Read Full article »
Zitec expands at Brasov and plans to hire 20 IT professionals by the end of this year

Romanian software company Zitec recently announced it has opened an office in the central city of Brasov, where it plans to hire 20 by the end of this year.

 Read Full article »
Ericsson and Skanska trial IoT for Smart Buildings

Skanska, the world leading project development and construction group, has initiated an Internet of Things (IoT) trial with Ericsson for Skanska Commercial Development Nordics.

 Read Full article »
Skanska started the workings at Campus 6, its newest project locally

The official ceremony joined local officials, such as Gabriel Mutu, mayor of bucharest's sixth district, Aurelia Luca, Country Manager Skanska Property România, Katarzyna Zawodna, Business Unit President Skans

 Read Full article »
Deloitte Romania: learning and career development, high up on the business and HR agenda

Driven by the frequent change of the professional competencies required to perform at work, lack of experienced candidates and employee's desire to develop professionally continuously, learning and career devel

 Read Full article »
Softelligence to hire 100 by end-2018

Romanian business software company Softelligence recently announced it plans to hire 100 developers by the end of next year in its software engineering office in Craiova.

 Read Full article »
Cosmin Pătlăgeanu, Marketing Manager, Luxoft România is the new president of ABSL

The Association of Business Service Leaders in Romania (ABSL) announces the naming of Cosmin Pătlăgeanu, Marketing Manager, Luxoft România as the organization's new president.

 Read Full article »
PIN MAP IASI: The first business map of Iasi is launched

After a team effort of over half a hear, the team of The PIN Map project announced it is launching the first map of the offices in Iasi - PIN Map Iasi (www.pinmapiasi.ro), within a press conference hosted by Ia

 Read Full article »
UiPath Automation Academy RPA-certified 500 users in April

One year ago, UiPath offered RPA free for individual users, education projects and small to medium businesses. UiPath Community Edition has been a great success, and their Community Forum now hosts a growing nu

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» PIN MAP IASI: The first business map o...
» Softelligence to hire 100 by end-2018
» Cosmin Pătlăgeanu, Marketing Manager...
» A look ahead: How artificial intellige...
» Deloitte Romania: learning and career ...
» UiPath Automation Academy RPA-certifie...
» SoftOne Romania becomes operational hu...
» Romanian Outsourcing Awards for Excell...
» Romanian Outsourcing Awards for Excell...
» Alten opens a delivery center in Iasi
 
EDITOR CHOICE
TELUS International Europe: Three ways travel and hospitality contact centers can localize the customer experience

Flight delays. Booking or check-in problems. Regional, cultural and linguistic differences. The travel and hospitality business can be a perfect storm for contact centers offering both added challenges and uniq

 Read Full article »
Romanian Outsourcing Awards for Excellence 2017 applauds its Winners!

Outsourcing Today, the integrated communication platform of the business services sector and The Diplomat – Bucharest is honored to praise its winners awarded at The Third Edition of Romanian Outsourcing Awar

 Read Full article »
Romanian Outsourcing Awards for Excellence 2017 - Finalists Announcement

Outsourcing Today, the integrated communication platform of the business services sector and The Diplomat – Bucharest, present the Third Edition of Romanian Outsourcing Awards for Excellence, on May 11, 2017

 Read Full article »
TELUS International Europe: Turning a satisfied customer into a loyal customer – Q&A with a hospitality expert

Leonardo Inghilleri literally wrote the book on customer service in the hospitality industry - and an international bestseller at that.

 Read Full article »
Romanian Outsourcing Awards for Excellence designates the industry winners on May 11

Outsourcing Today, the integrated communication platform of the business services sector, presents the Third Edition of the annual Romanian

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