Activision Buys King
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Activision Blizzard buys “Candy Crush Saga” creators King Digital Entertainment a sum of 5.9 billion dollars. The Activision stock opened lower on Tuesday morning as speculations emerged on whether it was such a wise move to buy King, whose primary asset has been dropping for several quarters in a row. The stock rallied, though, ending at 3.6 percent higher with a new all-time high of $35.82.
“Candy Crush” has without a doubt been a huge success to King, but the company has had problems making up for its decreased income with new franchises such as “Bubble Witch” and “Farm Heroes”. Either way, Activision predicts that the purchase will increase their revenues with 30 percent next year, giving them access to more than 500 million users throughout 200 countries.
“I think this is a deal which makes sense for investors and it makes sense from a strategic point of view for the business,” said Riccardo Zacconi, King’s chief executive in a statement.