‘Candy Crush Saga’ Maker Files for IPO
The maker of Candy Crush Saga filed its Initial Public Offering (IPO) of up to $500 million today. King Digital Entertainment undoubtedly hopes to follow in the footsteps of Zynga, who filed their IPO in late 2011 and has become one of the biggest leaders in mobile gaming.
King filed their IPO with the Securities and Exchange Commission (SEC) today and plans to trade on the New York Stock Exchange under the ticker “KING.” Some analysts believe that King could be worth more than $5 billion, which is less than what Zynga’s valuation was in 2011, but is nothing to scoff at nonetheless.
Candy Crush Saga was first released in April 2012 and has since become a raging success, which you probably already knew (even if you don’t play the game yourself) if you ever go near Facebook. According to Recode, “King generated profits of $568 million on revenue of $1.88 billion” in 2013. After posting a loss in 2011, the release of Candy Crush has made King into a powerhouse.
The game has been downloaded more than half a billion times and according to King’s IPO, Candy Crush has almost 130 million daily users as of December 2013. The number of daily active users has steadily increased since the game was first released, so there is no reason to expect the game, which accounts for more than three-fourths of King’s revenue, to drop off anytime soon.
In addition to Candy Crush Saga, King also has several other games, including Farm Heroes Saga, Papa Pear Saga, Pet Rescue Saga and Bubble Witch Saga. Even though these games don’t currently generate close to the revenue that Candy Crush earns, perhaps the attention King is getting for their IPO will increase their number of users.
Considering what a cash cow Candy Crush has become, King was recently approved for a trademark of the word “candy” as far as using the word for video games and clothing goes. The company is also trying to trademark the word “saga.” As such, any developers hoping to slip “Candy” in as part of their game title and perhaps capitalize on Candy Crush’s success won’t be successful. Apple is helping protect the trademark, similar to their move to protect Flappy Bird by rejecting any new titles with “Flappy” in their name.
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