Wednesday 26 March 2014

Candy Crush Developer Valued at $7 Billion Following IPO

                                              

UK based games developer King has listed its shares on the New York Stock Exchange and having raised US$500 million now has a market capitalisation of over US$7 billion.
King said it plans to use the money raised for "working capital" and "other general corporate purposes, which may include acquisitions".
The company is best known for its hugely successful Candy Crush games franchise, but there are concerns that the company is too heavily dependent on one blockbuster product.
Candy Crush was the most downloaded free app of 2013, and it generates revenue from advertising and in-app purchases.
The company's top three games -- Candy Crush Saga, Pet Rescue Saga and Farm Heroes Saga -- accounted for 95% of its total revenue in the fourth quarter of 2013.
Pressure on the company will rise to show that it can develop a long tail of reliable revenue generating games in a market that could see curbs on in-app purchases and continued pressure on mobile advertising revenues.
Shares will start trading on the stock exchange later today.

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