Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
mbozlinksi@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

‘Candy Crush’ maker King set to go public

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Barbara Ortutay
Associated Press
Published:
NEW YORK — King Digital, the company behind the wildly mobile game “Candy Crush Saga,” is scheduled to make its debut on the New York Stock Exchange this week.
The company could be valued as high as $7.6 billion if its initial public offering prices at $24 per share, the upper end of its expected range. That’s nearly twice as much as its closest rival Zynga Inc., the creator of “FarmVille.”
Unlike Zynga, however, King is profitable and has less than a third of Zynga’s employee base.
The company is offering 15.5 million shares. Existing shareholders are offering another 6.7 million. King expects proceeds of $326 million from the IPO.
King, based in Dublin, Ireland, generated revenue of $1.88 billion last year. That’s more than 10 times its 2012 revenue of $164.4 million. Zynga’s 2013 revenue was $873.3 million.
Still, some analysts have wondered whether King is destined to become another Zynga, which was also riding a wave of popularity when it went public in 2011, thanks to “FarmVille.”
Already, King has seen a sequential revenue decline between its third and fourth quarters.
“With King’s tent-pole title, ‘Candy Crush Saga,’ currently tracking 20 (percent) below peak-booking levels, future growth will depend on the company’s ability to diversify,” wrote Sterne Agee analyst Arvind Bhatia.
He called the expected IPO price range for the company a fair value for King, noting that it’s cheaper than top video game publishers and “seems fair given King’s revenue concentration” in just a few titles.
Bhatia points out that while King has a portfolio of more than 180 games, its revenue is concentrated in just three. “Candy Crush Saga,” “Pet Rescue Saga” and “Farm Heroes Saga” made up 94 percent of all bookings in the fourth quarter.
The company is expected begin trading Wednesday on the NYSE under the ticker symbol “KING.”

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup