Posted Tue Nov 3, 2015 at 05:39 AM PST by Brian Hoss
ATVi instantly vaults to the top of the mobile space.
Somewhere close to you right now is another human being playing a game. For a better or for worse, the game being played is probably a mobile game, and it may even be 'Candy Crush Saga.' Late last night, Activision Blizzard, makers and publishers of some of the biggest and most successful console and PC gaming franchises ('CoD,' 'Wow,' 'Skylanders,' etc.) announced the ultimate pay to win move, a transaction where a subsidiary of ATVI would acquire all of King Digital Entertainment for $5.9 billion.
The transaction to buy the maker and owner of 'Candy Cruch Saga,' 'Candy Crush Soda Saga,' etc. breaks down to $18 per share or roughly 20-27% more than the shares and company had been valued at the end of October. The ensuing verification process isn't expected to be complete until Spring 2016, but it's safe to say that this is a move by ATVI to gain market share now and to try to keep that gain going.
Several prestigious financial institutions have blessed the deal, but at the level of the transaction, the $5.9 billion price has to be valued differently than red and black for a company whose net profit in the last year was $0.6 billion.
At the same time, King's leadership, Chief Executive Officer Riccardo Zacconi, Chief Creative Officer Sebastian Knutsson, and Chief Operating Officer Stephane Kurgan, are all staying in place under long-term contracts. ATVI will work with all of King's expertise in terms of player data, micro-transactions, mobile infrastructure, and cross-promotion while gaining a new (and different) revenue stream.
Source: Activision Blizzard
The latest news on all things 4K Ultra HD, blu-ray and Gear.