Maker of hit mobile game 'Candy Crush Saga' files for IPO
King Digital Entertainment, the company behind hit mobile game Candy Crush Saga, is making moves to go public on the New York Stock Exchange under the KING ticker.
Candy Crush, highly addictive on both iOS and Android, generated profits of $568 million on revenue of $1.88 billion for King in 2013. That’s up from a loss of $1.3 million on revenue of $64 million in 2011, before Candy Crush was released in 2012. It makes up 78 per cent of the developer's revenue, thanks to the 93 million people playing the game every day.
The move for King to become a public company once again highlights how booming of an industry mobile games has become. This was also evident with the recently closed Flappy Birds, which generated $50,000 in profit for its indie developer daily.
A filing with the US Securities and Exchange Commision on Tuesday didn't reveal a share price or bank underwriter for the public offering, but noted King is hoping to raise $500 million. Assumedly, King is hoping the cash from the IPO will help bring more money on board for more development.
King will be tasked with not suffering the same fate as Zynga and Rovio, who developed FarmVille and Angry Birds, respectively. The company has seen so much success with the Candy Crush title, what happens to its bottom line when the game inevitably fades away may worry investors.
King joins other technology companies who are reportedly seeking an IPO, including Spotify, AirBnB, and Square.