Gaming company Activision Blizzard is all set to acquire King Digital Entertainment, parent company of Candy Crush Saga for $5.9 billion in cash.
It is a well-known fact that Candy Crush is one of the most profitable mobile video games, currently. LAst year the company King generated revenue of $1.33 billion. Apart from Candy Crush, King has other games like Cand Crush Soda, Farm Heros Saga, Paradise Bay, Bubble Witch Saga, Alphabetty Saga, Diamond Digger Saga and more. The company consists of a community with more than 340 million unique users.
Activision, on the other hand, is the company behind hit console games like the Call of Duty series. The acquisition is considered to be part of the company’s new global strategy to get a hold of the lucrative mobile gaming sector and further expand Activision Blizzard’s intellectual properties that consists of Call of Duty, Destiny, World of Warcraft, Heros of the Storm, Starcraft, Guitar Hero and many more. The company is considering this as an opportunity to cross-promote and grow a number of its franchises through the mobile gaming sector.
The acquisition is a cash deal that will come out of the publisher’s available offshore funds and from $2.3 billion loan that it will take out from Bank of America, Merrill Lynch and Goldman Sachs. The acquisition is subjected to the approval of the King Digital’s shareholders, but the news has already excited many and is expected to be reaching closure by mid 2016.
Robert Kotick, CEO of Activision said, “”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,” in the press release.