Candy Crush Saga makers price IPO around US$7 billion
King Digital Entertainment’s share price per piece is US$22.50; however, company share prices went down about 12% following the newsBy Jonathan Toyad 27 Mar, 2014
Social games behemoth King Digital Entertainment had a heck of a start in 2014. First, it tried to trademark the word “Saga”. Then it filed for an initial public offering (IPO) that was possibly worth US$500 million.
Just recently (via The Wall Street Journal), the company that made Candy Crush Saga announced the price of its IPO of the game: US$22.50 per share. This places the company’s valuation at US$7 billion.
King said that it is aware of investor concerns that the company’s success is all hinging onto the insanely popular Facebook match-three puzzle title. The company assured them that its library of games still generate a substantial amount of its total revenue, like Pet Rescue Saga and Farm Heroes Saga for example.
King also said that it must develop new games and enhance its existing titles to maintain community and player interest, as well as make them contribute money via in-app purchases: “Our continued growth will depend on our ability to regularly develop new games and enhance our existing games in ways that improve the gaming experience for both, paying and non-paying players, while encouraging the purchase of virtual items within our games.”
Would savvy investors think that King is overvaluing itself? Well, two hours after its IPO was filed and went into trading, the company’s share prices went down 12 per cent, most likely due to fading interest in the brand. In spite of this, King Co-founder and CEO Ricardo Zacconi still wants the company to be known for something other than Candy Crush Saga (via CNBC).
“What we want to achieve is not to find another Candy Crush,” he said, “That’s not what we are here for. What we are here for is to build a portfolio of games. We want to build a network of players, of loyal players, who play our portfolio of games.”