http://money.cnn.com/2014/03/23/investing/king-candy-crush-ipo/index.html?iid=Lead
The producer of Candy Crush Saga, King Digital Entertainment, is going to sell 22 milion shares at $21-$23 per share, making its market value about 7$ billion. Some of King’s competitors such as Activision and Zynga, have a market value of $15 billion and $4 billion consecutively. Last year, King had an avenue of $1.9 billion and profit of $568 million. Many are concerned that King’s profit margins mostly came from only one game- Candy Crush Saga; but according to Tim Keating, chief executive in making pre-IPO investments, King has strong profit margins and a huge 1000% revenue growth in 2013.
This is really interesting, it shows that one thing a company does can change how much its worth very quickly. I wonder how their shares will sell if some people are concerned that this the game Candy Crush Saga is the only thing that made them relevant.
ReplyDeleteI will like to see how this plays out into the future and to see how sustainable this profit will be. Is Candy Crush just a fad? King Digital Entertainment may need to diversify their options.
ReplyDeleteI think that candy crush was just a fad and the other games they have created are not nearly as good. I would be concerned to purchase shares of King Digital Entertainment .
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