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Activision Blizzard buys Candy Crush maker King Digital for US$5.9 billion

By Cookie Monster - on 3 Nov 2015, 3:24pm

Activision Blizzard buys Candy Crush maker King Digital for US$5.9 billion

 Image source: Apple iTunesImage source: Apple iTunes

King Digital Entertainment, the mobile game developer behind the popular Candy Crush Saga, is acquired by Activision Blizzard for a whopping US$5.9 billion.

According to the Financial Times, this acquisition is considered the gaming industry's biggest deal since Microsoft bought Minecraft a year ago. Activision is also a gaming company which develops popular console and PC games such as Call of Duty. The acquisition should give Activision more than 500 million monthly active users across nearly 200 countries, and an opportunity to make use of the intellectual property in Activision. 

The acquisition is expected to close by early 2016 with Activision funding the deal with US$3.6 billion in cash and the rest through debt. Riccardo Zacconi, the CEO of King Digital, shared his views on the deal:

Financial Times -  "I think this is a deal which makes sense for investors and it makes sense from a strategic point of view for the business,” Mr Zacconi said.

The acquisition seems to be a risk for Activision as revenue from Candy Crush Saga has been declining. If you recall, Zynga bought Draw Something developer OMGPOP in 2012 for US$200 million due to the popularity of the game with mobile users. Draw Something soon turned out to be a one-hit wonder and Zynga had to shut down 11 titles to cut costs. Only time will tell whether this acquisition makes sense for Activision in the long term.

Sources: Financial Times and PhoneArena

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