“King.com, maker of the popular ‘Candy Crush Saga’ puzzle game on Facebook Inc. and Apple Inc. products, made a confidential filing for an initial public offering, a person familiar with the matter said,” Cliff Edwards and Ari Levy report for Bloomberg. “The company, part of Midasplayer.com Ltd., according to its website, hasn’t set a date for the sale, said the person, who asked not to be named because the plans are private.”
“An IPO could value the business at $5 billion to $7 billion, said Michael Pachter, an analyst with Wedbush Securities in Los Angeles, who based his estimate on sales figures from company executives,” Edwards and Levy report. “‘A $5 billion valuation is perfectly reasonable,’ Pachter said. ‘They aren’t a one-hit wonder, they’re a four-hit wonder and if the numbers show that’s sustainable, they’ll get more than the $5 billion.’ Sales this year will top $1 billion, up from about $500 million in 2012, according to Pachter.”
Edwards and Levy report, “King.com, which has offices in San Francisco and Stockholm, holds the top two spots among monthly active users on Facebook with ‘Candy Crush Saga’ and ‘Pet Rescue Saga,’ according to the website AppData, which tracks usage. It’s among the top downloads on Apple’s iOS devices…”
Read more in the full article here.
When are investors going to figure out these multi billion $$ valuations for Game app companies are ridiculous. These are short lived 1 or 4 hit wonders that get a big boost for a year or 3 then fade away. farmville anyone.
Completely agree. Maybe this is to thwart off being purchased by Facebook. Whatever happened to Draw Something? That was short lived.
I’ve been playing Candy Crush for 6 months now and have made it to level 410 without purchasing any boosters. I felt the game was good so I have purchased “tickets” to move to the next levels. I’ve been on 410 for a few weeks now.
If I had $5B and my options were King.com or Apple, I would buy AAPL without hesitation.
Earning little = continuous growth = takes 1000000 years to earn what other takes one year = big market share = free = a bubble = high pe = amazon = bulkshit .
I find little relevant or meaningful in your statement. Try again and use words and sentences.
Use your brain
Rather than you figuring out how to write a proper sentence ?
What I say truly is equal to each other in the share market.
“A $5 billion valuation is perfectly reasonable”
Is he insane?
I have not played this game but it reminds me of other games that had this success. When the reach this stage that everyone talks about them like this, it’s te peak. Everyone that is going to pay the game already does. They might grow the player count but at a much slower phase and WallStreet does not like that. Does not matter if they make money, or not. It’s the growth that counts. And what comes after this? Thu will most likely not have a hit like this again.