Home Daily Blitz Activision Blizzard to buy ‘Candy Crush’ maker King for $5.9 billion
0

Activision Blizzard to buy ‘Candy Crush’ maker King for $5.9 billion

0
0
Mascots dressed as characters from the mobile video game "Candy Crush Saga" pose during the IPO of Mobile game maker King Digital Entertainment Plc on the floor of the New York Stock Exchange March 26, 2014.   REUTERS/Brendan McDermid
Mascots dressed as characters from the mobile video game "Candy Crush Saga" pose during the IPO of Mobile game maker King Digital Entertainment Plc on the floor of the New York Stock Exchange March 26, 2014. REUTERS/Brendan McDermid

The following is an excerpt from ERIC AUCHARD AND LEILA ABBOUD | November 3, 2015 | Reuters.com |

ideo game maker Activision Blizzard (ATVI.O) it to buy "Candy Crush Saga" creator King Digital Entertainment (KING.N) for $5.9 billion, as the heavyweight of console and PC gaming makes a major push into the faster-growing mobile market.

The deal would be one of the biggest in the industry in recent years, more than twice the size of Microsoft's (MSFT.O) $2.5 billion purchase of "Minecraft" maker Mojang last year, and the biggest-ever acquisition of a mobile gaming company.

The failure of King to replicate the success of Candy Crush with follow-up titles such as "Farm Heroes" and "Pet Rescue" has led some investors to worry it may be a one-hit wonder.

But Activision is betting its experience in sustaining long-running blockbuster franchises like "Call of Duty" and "World of Warcraft" can help it develop new hit series.

The deal also gives the U.S. company a major presence in the mobile market, where games sales are expected to grow 21 percent this year to $20.6 billion, according to research firm Newzoo.

That compares with expected growth of 7 percent for computer games and 2 percent for TV and console games, although they will still represent the lion's share of the $91.5 billion overall industry, according to the industry researchers.

For more visit: reuters.com

Menu