Activision aquires "Candy Crush Saga" creator for $5.9 billion
Post By Gautam lal on 07-March-2016
California-based video game maker Activision Blizzard, popular for its Call of Duty and Warcraft series acquires King Digital Entertainment(KDE), developer of the " Candy Crush Saga" for $5.9 billion.
This is one of the biggest deals in the gaming industry after Microsoft's acquisition of "Minecraft" maker Mojang for $2.5 billion.
Activision is paying $18 per share and to pay this whopping amount they will pull $3.6 billion cash out of the balance sheet and borrow $2.3 billion.
Although King Digital has failed to produce another successful product like Candy crush,it will add upto 30% to Activision's revenue besides the humongous user-base.Together the two companies will have more than 500 million active users monthly.
After this acquisition, Europe-based KDE will keep working as an independent company under the supervision of Riccardo Zacconi, Founder and CEO of King Digital Entertainment.
With this deal Activision aspires to take over the growing mobile gaming industry which grossed $25 billion in revenue last year and is expected to increase to $45 billion by 2018, at annual growth rate of 15%.