Video game developer Activision Blizzard has just acquired King Digital Entertainment, the company behind the popular 'Candy Crush Saga' mobile games, for $5.9 billion.
The figure represents one of the biggest ever sums shelled out in the video game industry. To put it in perspective, Microsoft paid approximately $2.5 billion to acquire 'Minecraft' developers Mojang last year; while Amazon spent $1.1 billion on Twitch.tv, a popular gaming based online streaming service that attracts millions of viewers.
By paying King Digital's hefty price tag, Activision - a company known for its popular Console and PC based titles such as 'Call of Duty' and 'World of Warcraft' - has turned itself into a major player in the burgeoning mobile game market seemingly overnight. Other popular titles under the Activision Blizzard banner include Hearthstone: Heroes of Warcraft, Guitar Hero, and Destiny.
Financial analysts Cowen & Co. believe that the purchase was good business for Activision writing, 'we believe this deal is an absolute steal for Activision and immediately vaults them to being one of the top mobile gaming companies in the world.'
The company's official press release says the deal helps solidify its place as a global leader in interactive entertainment.
'Activision Blizzard believes that the addition of King's highly-complementary business will position Activision Blizzard as a global leader in interactive entertainment across mobile, console and PC platforms, and positions the company for future growth.'
CEO Bobby Kotick had this to say: The combined revenues and profits solidify our position as the largest, most profitable standalone company in interactive entertainment. With a combined global network of more than half a billion monthly active users, our potential to reach audiences around the world on the device of their choosing enables us to deliver great games to even bigger audiences than ever before."
