In a crushing move, Activision Blizzard has gobbled up Candy Crush maker, King Digital for $5.9B moving the company into the crowned leader of interactive entertainment.
The deal will position Activision Blizzard into one of the largest entertainment networks with over a half a billion monthly active users in over 196 countries.
So why would a company that traditionally publishes games for First Person Shooters and MMORPG’s want to purchase King Digital Entertainment or more importantly, Candy Crush Saga? For one, mobile gaming accounts for 19% of the total dollars spent in the video gaming market. Instead of Activison Blizzard spending their own money getting into the market its much easier for them to acquire an existing successful company like King.
“We believe that the acquisition will position us very well for the next phase of our company’s evolution,” said Riccardo Zacconi, CEO of King. “We will combine our expertise in mobile and free-to-play with Activision Blizzard’s world-class brands … to bring the best games in the world to millions of players worldwide.”
King will still act as an independent unit while under Activision and their senior executive swill sign long-term contracts.
The complete acquisitions is expected to be finalized by end of Q2 in 2016.