Wall Street is giving King Digital, the company behind the popular mobile game Candy Crush Saga, the cold shoulder in its public trading debut.
King’s stock priced at $22.50 Tuesday, valuing the company at $7.1 billion. But it opened Wednesday at $20.50, down almost 9 percent. Its shares lost more ground by the day’s close, falling more than 15 percent.
King Digital Entertainment PLC had $1.88 billion in revenue last year. That’s more than 10 times its 2012 revenue of $164.4 million. But some analysts have questioned whether King would be able to repeat the success of Candy Crush, which has been far more successful than any of its other games.
King is trading on the New York Stock Exchange under the ticker symbol KING. Shares fell $3.50 to close at $19.01 Wednesday.
Women: J&J trashed records in injury suits
Lawyers and advocates for women alleging Johnson & Johnson products injured them urged the U.S. Justice Department on Wednesday to investigate their claims that the health care giant deliberately destroyed many documents critical to their lawsuits.
Corporate Action Network, a nonprofit group seeking to hold businesses accountable for their actions, said it has asked Attorney General Eric Holder to look into whether the New Brunswick, N.J., company and its CEO obstructed justice and destroyed records in a federal probe.
More than 22,000 women suing J&J blame its pelvic mesh implants for crippling pain, infections and bleeding. Last month, a U.S. District Court judge concluded that J&J destroyed thousands of documents regarding development of its implants but said there was no proof that was done intentionally.
Levi Strauss plans to cut about 800 jobs
Levi Strauss & Co. will eliminate about 800 jobs, almost 20 percent of its non-retail and non-manufacturing employees, over the next 18 months. The privately held company said its restructuring plan will help it become more competitive, lower costs and improve its financial health.
Last month, the company said its fourth-quarter gross profit weakened because it had to increase markdowns due to a slower holiday season and softness in its Levi’s juniors and misses businesses.
Levi Strauss said Wednesday that the cuts will primarily be management positions across the world and getting rid of what it considers duplicate roles. Levi Strauss also makes the Dockers and Denizen brands.
Activist investor calls for new Darden CEO
It’s time for Olive Garden’s parent company, Darden Restaurants, to consider looking for a new CEO, an activist investor said Wednesday.
Barington Capital Group sent a letter to the independent directors on Darden’s board outlining concerns about the company’s rapidly deteriorating financial performance under chief executive Clarence Otis.
The letter said the firm has long questioned why the board did not select a person with stronger operating experience in the industry to run Darden.
Darden said in a statement that its focus was on doing what is in the best interest of all Darden shareholders.
The intensifying criticism comes as the Orlando, Fla., company fights to boost sales at its struggling Olive Garden and Red Lobster chains.