Candy Crush Saga creator plans stock market debut

 

King Digital, the company behind the popular online game 'Candy Crush Saga', soon plans to make its debut into the U.S stock market. According to a filing obtained from the SEC, the company is planning an IPO (or initial public offering) which some analysts say could generate massive profits and clear the path for other online game companies to do the same.

According to the filing, King Digital - which hopes to raise up to $500 million in the offering - will be publicly traded on the market with the ticker symbol 'KING'. The filing also gave a glimpse into the finances of the company, which saw a revenue of $1.9 billion dollars in 2013. Most of this success is owed to their most popular game, Candy Crush Saga, which has been downloaded over 500 million times since its launch in 2012. 

In December, the game saw a peak in popularity - with almost 93 million users playing every day. And while the company offers many other lesser known games (such as Pet Rescue Saga and Papa Pear Saga), Candy Crush is by and large the biggest money maker for King Digital.

Despite this relative success, the company has experienced its fair share of controversy in recent months. King Digital has been embroiled in a fairly significant conflict over its attempt to trademark the words 'candy' and 'saga', and the subsequent cease and desist letters which the company sent out to other smaller game makers it had found to be infringing on the copyright. Many game companies have expressed their displeasure with the practice, with one developer even accusing King of outright stealing his game - which he claims to have made almost 2 years before Candy Crush Saga's release. This controversy, however, is overshadowed by the news surrounding King's stock market debut.

While King has seen major success with Candy Crush Saga, some say the game may also be their downfall. Contrary to the generally positive outlook by many analysts, some say King may go the route of Zynga - another popular game company, which produced hits such as Farmville and Bubble Safari. Zynga experienced the same fervor and attention when they announced their IPO in 2011, but the hype died down soon after when Zynga, who struggled to recreate the success of its most popular games, saw their share price fall almost 50% in the years following their IPO. That being said, King has profits on their side, and even despite the controversy, the Candy Crush craze doesn't seem to be dying down any time soon.

Source: SEC filing | Image via Shutterstock - photo of Candy Crush Saga on Facebook

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10 Comments

Wow. I just read the letter from the guy who came up with the game before Candy Crush. I know there are two (or more) sides to every story, but his side is certainly compelling. Greed can sure make people do some sad things.

the Candy Crush craze doesn't seem to be dying down any time soon
These are all just fads. The day is bound to come soon when people with ever shorter attention spans will gravitate to the next darling of the masses. I definitely foresee this company ending up just like Zynga since reproducing their success is going to be no mean feat, plus they are even more arrogant as the trademarking saga shows.

I have to agree. Let's be honest... CCS is the only reason this company has survived financially, and just like Zynga, eventually people are going to move on to the next big thing.

I'm not saying they won't have any success, they may do very well. And they may end up with a number of successful games. But I can't help but feel it's another dot-com bubble in the making, trying to become too big too fast with too little to offer.

Another fly by night mobile game company that will be irrelevant in the next 6 months. Don't these people that run these companies see how unstable and fickle the gaming market is for mobile games? Their games are a complete FAD that will got eh way of farm-ville soon.
Add the fact that this company seems like it is run by a bunch of lawyer hawking douche bags trying to copyright the English language in their favor and I doubt they last much longer.

swanlee said,
Another fly by night mobile game company that will be irrelevant in the next 6 months. Don't these people that run these companies see how unstable and fickle the gaming market is for mobile games?
Their only concern is to cash in on the success they have _now_. Whatever happens a year from now they could not care less as they will all be filthy rich and set for life.

This is a different then Zynga.

Zyna failed to make the leap to mobile devices and as users shift to more mobile games vs facbook web only games, they were unable to make the leap. They still need to show they can make a profit from future games.

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