Activision Blizzard is underway to acquire the game company King. King is the maker of one of the most popular mobile games ever, being Candy Crush. This acquisition is going to cost Activision Blizzard a total value of $5.9 billion.
This purchase will be made by a subsidiary company of Activision call ABS Partners C.V. at a price of $18 per share.This sale should be completed by Spring 2016 as there are still many shareholders that have to approve the acquisition. This is a major step for Activision Blizzard, saying that they are ready to invest and be more aggressive in the mobile game industry.
With Candy Crush being King’s top grossing mobile game, they have struggled to create other games that have come anywhere close to the success of Candy Crush. Candy Crush now accounts for just over a third of King’s profits. Despite this, Candy Crush is also declining in earnings. Overall this acquisition will change things for Activision Blizzard drastically , due to the fact the only 5% of their second quarter earnings came from mobile.