How Much Did Blizzard Pay for King?
In February 2016, Activision Blizzard acquired King Digital Entertainment, the creator of the popular mobile game Candy Crush Saga, for a whopping $5.9 billion. This acquisition marked a significant milestone in the history of both companies, with Activision Blizzard expanding its presence in the mobile gaming market and King Digital Entertainment becoming a part of one of the largest gaming conglomerates in the world.
A Brief History of King Digital Entertainment
Founded in 2003, King Digital Entertainment started as a small studio focused on developing casual games for online platforms. Over the years, the company grew and gained popularity with the launch of its flagship game, Candy Crush Saga, in 2012. The game became a global phenomenon, with over 500 million downloads worldwide. King Digital Entertainment continued to develop new games and expand its reach, solidifying its position as a major player in the mobile gaming industry.
Why Did Activision Blizzard Acquire King Digital Entertainment?
Activision Blizzard’s acquisition of King Digital Entertainment was a strategic move to expand its presence in the growing mobile gaming market. The company recognized the huge success of King’s mobile games, particularly Candy Crush Saga, and wanted to leverage its expertise to create more engaging and addictive mobile experiences. Additionally, the acquisition allowed Activision Blizzard to diversify its revenue streams, which had previously been heavily dependent on console gaming.
The Acquisition Deal
In February 2016, Activision Blizzard announced its plan to acquire King Digital Entertainment for $5.9 billion, in an all-cash transaction. The deal was one of the largest in the gaming industry at the time and marked a significant shift in the market dynamics. Under the terms of the acquisition, King Digital Entertainment’s employees and operations were absorbed into Activision Blizzard’s mobile gaming division, led by King’s founder, Riccardo Zacconi.
Impact on the Gaming Industry
The acquisition of King Digital Entertainment had significant implications for the gaming industry. It marked a new era of consolidation and cross-platform collaboration, with large gaming companies looking to expand their reach and create new experiences across different platforms. The deal also paved the way for further investments in mobile gaming, which had previously been a niche market.
Comparison to Other Gaming Acquisitions
Here’s a comparison of the $5.9 billion acquisition deal between Activision Blizzard and King Digital Entertainment to other notable gaming acquisitions:
| Company | Acquired Company | Acquisition Value | Year |
|---|---|---|---|
| Electronic Arts | Respawn Entertainment | $455 million | 2017 |
| Tencent | Riot Games | $435 million | 2015 |
| Sony Interactive Entertainment | Gaikai | $380 million | 2012 |
| Activision Blizzard | King Digital Entertainment | $5.9 billion | 2016 |
Conclusion
In conclusion, Activision Blizzard’s acquisition of King Digital Entertainment for $5.9 billion was a significant event in the gaming industry, marking a major shift in the market dynamics. The deal allowed King to leverage Activision Blizzard’s resources and expertise to expand its reach and create new experiences, while also enabling Activision Blizzard to diversify its revenue streams and tap into the growing mobile gaming market. The acquisition serves as a prime example of the consolidation and collaboration that is driving the evolution of the gaming industry.