Published in Gaming

Is the maker of Candy Crush Saga worth $7bn?

by on26 March 2014

Hell no

King, the maker of Candy Crush Saga, has filed for an IPO valued at over $7bn. Shares are priced at $22.50 and there's a lot of interest.

The game attracts more than a hundred million users a day and makes its money through in-game purchases. King knows what it's doing, it is not a tiny company launched by enthusiasts, it's been in the business for roughly a decade and thanks to Candy Crush it is making a killing.

King's earnings are up 7000 percent from last year, thanks to Candy Crush, and so far the Swedish company has made more than half a billion dollars on the runaway hit. In addition to Candy Crush, it has a few other successful titles, although none of them comes close to Candy Crush.

However, there is a lot of scepticism in the air. Many analysts warn that King might be another one hit wonder and that it might never replicate the success of Candy Crush. The mobile gaming market is very volatile and it has already burned some investors. Rovio and Zynga are good examples of overhyped mobile gaming outfits. Neither of them is doing well right now, although they dominated the market just a couple of years ago.

This does not mean that King will fade away into obscurity in a matter of years, the company could continue to expand. It says it will use money raised in the IPO to make acquisitions and pay out early investors.

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