Candy Crush Soon to Hit the Stock Market; Developer Hired Analysts to Pursue IPO
Jun 18, 2013 11:38 PM EDT
Candy Crush Saga, a puzzle game developed by King, made its way to Facebook back in 2012 and now has an average of 45.6 million active monthly users. Who would have thought that this game may soon have its own initial public offering?
This may sound really weird but its developer, King, has hired Wall Street firms including J.P Morgan Chase, Credit Cruisse, and Bank of America to pursue this IPO plan. They will be discussing the pricing and timing of the IPO.
So why did King decided to do IPO? “King's success and growth presents numerous opportunities for the business to develop further, and one option would be to take the company public,” King told the Wall Street Journal. “However, while it's an option for the future, we would not comment on when we could consider making such a decision."
This move by King is a brave move for a game developer after Zynga’s performance plummeted to 70 percent of its IPO price. It will be quite difficult for the investors to decide to put their money on another online game.
However, mobile game developers may be successful if they are able to convince the investors since mobile game sales were projected to yield over $9 billion this year which is 13.5 percent higher than last year.
Candy Crush is not alone in this plan as other games are also planning to do IPO such as Kabam Inc.’s Kingdom of Camelot and The Fast and The Furious 6 which may be offered to the public in 2014. Rovio Entertainment Ltd., developer of Angry Birds, also expressed its interest, and then there is Supercell Oy that introduced as Clash of Clans and Hay Day.
Once Candy Crush becomes successful, we should expect more games joining the stock market soon. While others believe that investing on games is not a wise decision, it will still depend on how King can convince the audience to invest to them.