Activision Blizzard to buy ‘Candy Crush’ maker King Digital for US$5.9b
Video game publishers are shifting to lucrative digital business
Video game maker Activision Blizzard is buying Candy Crush Saga creator King Digital Entertainment for US$5.9 billion to strengthen its mobile games portfolio.
ABS Partners, a unit of Activision, will acquire King shares for US$18 each in cash, representing a 16 per cent premium to King's closing price on Monday.
The addition of King's mobile games would position Activision as a global leader in interactive entertainment across mobile, console and PC platforms, Activision said.
Video game publishers are shifting to the lucrative digital business from physical sales of games as consumers shift from consoles to playing on smartphones and tablets.
The fast-growing mobile gaming segment is expected to generate more than US$36 billion in revenue this year, according to Activision.
This is a fantastic opportunity for us to create compelling content for new demographics
Activision chief executive Bobby Kotick said buying King would help broaden the reach of its games and expand into new demographics, adding that 60 per cent of King's players were female and that no gaming consoles or hardware, besides a phone, was needed to play King's games.