You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Column: Hog prices grind lower
    Hog producers have been able to offset animal losses by fattening up the remaining hogs on inexpensive corn.
  • GM boosted June sales with discounts to dealers
    As General Motors prepares to report monthly sales results on Friday, a look its numbers from June show just how intent the company is on keeping new-car sales on the rise during a record spate of safety recalls.
  • Target taps outsider as next CEO
    NEW YORK – Target is bringing in an outsider as its CEO for the first time as the retailer fights to redefine itself to American shoppers.
Advertisement

‘Candy Crush’ maker King plans to go public

– King Digital, the company behind the wildly mobile game “Candy Crush Saga,” is scheduled to make its debut on the New York Stock Exchange this week.

The company could be valued as high as $7.6 billion if its initial public offering prices at $24 per share, the upper end of its expected range. That’s nearly twice as much as its closest rival Zynga Inc., the creator of “FarmVille.”

Unlike Zynga, however, King is profitable and has less than a third of Zynga’s employee base.

The company is offering 15.5 million shares. Existing shareholders are offering another 6.7 million. King expects proceeds of $326 million from the IPO. King, based in Dublin, Ireland, generated revenue of $1.88 billion last year. That’s more than 10 times its 2012 revenue of $164.4 million. Zynga’s 2013 revenue was $873.3 million.

Still, some analysts have wondered whether King is destined to become another Zynga, which was also riding a wave of popularity when it went public in 2011, thanks to “FarmVille.”

Already, King has seen a sequential revenue decline between its third and fourth quarters.

“With King’s tent-pole title, ‘Candy Crush Saga,’ currently tracking 20 (percent) below peak-booking levels, future growth will depend on the company’s ability to diversify,” wrote Sterne Agee analyst Arvind Bhatia.

He called the expected IPO price range for the company a fair value for King, noting that it’s cheaper than top video-game publishers and “seems fair given King’s revenue concentration” in just a few titles.

The company is expected begin trading Wednesday on the NYSE under the ticker symbol “KING.”

Advertisement