Candy Crush Maker Sets Share Price, Heads For NYSE IPO

Candy Crush Maker Sets Share Price, Heads For NYSE IPO

image

King's price is $22.50 per, setting the company's value at just over $7 billion.

Candy Crush maker King, more famous lately for its trademark tactics than its match-three puzzler, will start trading on the New York exchange as of March 26th, under the symbol 'KING'. Its IPO price is $22.50 per share on 22,200,000 shares, valuing the company at a little over $7 billion.

Can King deliver? King boasts 180 titles, and its Pet Rescue Saga and Farm Heroes Saga are both good earners, but candy is what makes King so valuable. A massive 78% of King's sales are attributed to one title, and the majority of its customers only know King because of Candy Crush. The candy-coated Saga has 97 million daily active users; King's next most popular titles each have fewer than 20 million daily active customers. If Candy Crush's fortunes fail, King starts looking a lot less enticing as an investment.

"We can go through a long list of one-hit wonders, everything from Angry Birds to FarmVille," says analyst Tony Wible of Janney Montgomery Scott LLC. "In this whole space, you should put a hefty risk discount into the valuations."

King says it wants to use the money raised for working capital, and also to fund what it describes as "general corporate purposes, which may include acquisitions." Estimates indicate that the IPO will create between 100 to 140 millionaires, on paper at least, a little under half of which will be King execs and staff. King CEO Riccardo Zacconi will be worth $700 million, when the IPO dust settles.

Source: Bloomberg

Permalink

Zynga part two? Make a load of 'on paper' money, have dubious stock practices and make a lod of quick money off the back of ordinary investors due to inflated prices.

King it's self is only really worth the assets it physically has. The user-base could disappeared as quickly as it appeared. Not to mention these companies have a horrible rabbit of overextending and crashing down to earth hard. All they have is their intellectual property, which is shaky at best, and their player base based in three shitty games.

Well at least now it will be easy to keep score of the inevitable demise of King just like the fall Zynga.

CriticalMiss:
Well at least now it will be easy to keep score of the inevitable demise of King just like the fall Zynga.

I agree with you 100%. These companies need to learn that what they're doing is not only morally shady and wrong, but also not a viable business strategy in the long term. There are only so many games that Kynga can steal and rip off before they start to lose that fanbase they've spent so little effort amassing...

On that note, when I was in Grainger Games yesterday I noticed a DS game that's basically a commercialised version of the Flash game 'Shift' and its sequels - which makes me think. Is there any real point to creativity nowadays when the new handheld game process seems to be:

1. Come up with interesting/unique gameplay concept
2. Create an online Flash game that utilises said concept
3. Watch as a horde of ripoffs appear on similar websites
4. Watch again as ripoff merchants create an identical game for the DS/PSP/mobile devices
5. Watch as said ripoff merchants make loads of money off an idea you created...

Scrumpmonkey:
Zynga part two? Make a load of 'on paper' money, have dubious stock practices and make a lod of quick money off the back of ordinary investors due to inflated prices.

Given King's almost identical modus operandi to Zynga's thus far, I cannot see this going any other way.

Hmmm, Deja Vu. Probably not gonna be long before I can look at this shit and laugh.

Sounds like a great investment opportunity... said no gamer ever...

Atmos Duality:

Scrumpmonkey:
Zynga part two? Make a load of 'on paper' money, have dubious stock practices and make a lod of quick money off the back of ordinary investors due to inflated prices.

Given King's almost identical modus operandi to Zynga's thus far, I cannot see this going any other way.

Same here. I have a feeling they are going to crash and burn within the next few years.

Still, they do have time to try and prevent that from happening...but I don't see that happening.

See, what bothers me is that they've set themselves at $22.50 a share. What gives them the idea that they think their stock is worth that much?

Micah Weil:
See, what bothers me is that they've set themselves at $22.50 a share. What gives them the idea that they think their stock is worth that much?

They are going to pull the same bullshit Zynga did with their $10billion dollar IPO; they are going to over-value it then do some borderline fraud (and sometimes over the border) selling off their own stock before the full investor offering when it will drop like a stone.

This is not a company with a stable of long running hits. It has one massive earning game (that is no different than the rest of the market). As a company they have no unique draws, there is nothing impressive about king.com. They have already peaked. I suspect they know this and when companies like this go public it tends to be a "Smash and grab" affair before all the users leave. They are another talentless flash in the pan and a terrible investment as well as being terrible, parasitic litigious people.

Their stock price has already fallen 15%.

http://www.bbc.com/news/business-26743296

ROFL!

Who the hell is buying this shit? Probably my pension fund ...

Im still waiting for Square to sue them over the Saga trademark. Square registered it first you know.

If anything this outfit seems almost worse and less ethical than Zynga. My spider sense is saying "expect SEC follies in the future!"

/e goes to get popcorn and settle in to watch the fun

Scrumpmonkey:
Zynga part two? Make a load of 'on paper' money, have dubious stock practices and make a lod of quick money off the back of ordinary investors due to inflated prices.

King it's self is only really worth the assets it physically has. The user-base could disappeared as quickly as it appeared. Not to mention these companies have a horrible rabbit of overextending and crashing down to earth hard. All they have is their intellectual property, which is shaky at best, and their player base based in three shitty games.

Yes, we see that rabbit all the time with these companies. Sorry, that's just a really funny typo.

OT: Good. Hopefully this will be the death of King. There was literally not one good thing that came from that company

MinionJoe:
Their stock price has already fallen 15%.

http://www.bbc.com/news/business-26743296

ROFL!

That is simply the price normalizing. King is worth nowhere near 7 billion dollars, that price is insane. Like i said it may transpire that the company was deliberately overvalued or some stock manipulation took place in the early stages of the IPO that netted them some gains. Maybe they think that by making the stock look valuable at first it will make people want to but it at the new 'discounted' rate? That $7 billion valuation is a fucking joke.

With an IPO the firm will also have a responsibility to provide accurate data on their projected earnings and estimated vale/ assets. It may transpire that certain people were mislead. The terms given to investors will differ but as a public traded company transparency is needed. This situation looks worryingly identical to the Zynga IPO for which civil and criminal action is still ongoing.

Dear Potential stockholders;
'Social'/smartphone game studios are a horrible investment. Kindly stop giving these con-men billions of dollars.

Kindly
the gaming community.

Scrumpmonkey:

That is simply the price normalizing. King is worth nowhere near 7 billion dollars, that price is insane.

Well, the IPO was started at 22.50. It opened at 20.50. And has now normalized around 19.60.

Reuters is reporting that they've only sold 15.5 million of the 22.2 million shares.

http://www.reuters.com/article/2014/03/26/kingdigital-ipo-idUSL4N0MN3LG20140326

So they've raised something around $300-350 million in equity. Far less than the $500-700 they were hoping for.

But yeah, $7 billion is an absurd valuation for this company.

MinionJoe:

Scrumpmonkey:

That is simply the price normalizing. King is worth nowhere near 7 billion dollars, that price is insane.

Well, the IPO was started at 22.50. It opened at 20.50. And has now normalized around 19.60.

Reuters is reporting that they've only sold 15.5 million of the 22.2 million shares.

http://www.reuters.com/article/2014/03/26/kingdigital-ipo-idUSL4N0MN3LG20140326

So they've raised something around $300-350 million in equity. Far less than the $500-700 they were hoping for.

But yeah, $7 billion is an absurd valuation for this company.

I don't see how King.com's share price could ever rise outside of normal price fluctuations. They have already had their mega hit which is fast becoming a bad, tired joke like Farmville did. "Cow clickers" and "Gem Swipers" are now scorned even by the mass market gaming press and some aspects of the wider tech press.

All those smug new 'App' bloggers, 'expert' analysts and all those who told the gaming community to "stop bitching about gaming's future" and who have lauded the social and iOS/Android scene for the past 5 years all look increasingly like ass-hatted gullible fools. I remember the gaming press used to tell us how important, innovative and new all these plucky little social/ mobile game start-ups were and that we were being spiteful and jealous of a new audience. Fast forward into our 'glorious social mobile gaming future' uncomfortable disquiet has turned to very vocal open mockery of a sector of gaming filled almost exclusively by irredeemable copy-paste non games.

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Register for a free account here