Andy Schuette has been gaming ever since he could hold a SNES controller in his hands and has been loving every minute of it. He's the funniest guy he knows, and the least funny guy everyone else knows.
It always seems to be a smart move to cushion one’s bottom line by acquiring smaller successful companies and start-ups. That said, Activision Blizzard announced that they will be buying out King Digital Entertainment for $5.9 billion.
If this company sounds familiar but you can’t quite place them, they are the reason you got all of those obnoxious invites from Facebook friends the play their top-selling game, Candy Crush.
Activision Blizzard, the parent company of–you guessed it–Activision and Blizzard are looking to take over one of the fastest growing areas of gaming: the mobile platform. King Digital Entertainment has shown what can be done on the platform with their incredibly popular game series Candy Crush. King currently holds five of the top 30 spots on Google Play for “Top Grossing Games”, as well as three of the top 30 spots on iTunes.
In addition to taking over the mobile market, this acquisition will expand the already impressive portfolio of Activision Blizzard; They already have the highly popular console series Call of Duty, one of the most recognized MMOs (World of Warcraft), and now can add two of the top grossing mobile games to their list (Candy Crush Saga and Candy Crush Soda Saga).
All of these successes stacked on top of each other will certainly help raise the company to be one of the top producing entertainment networks, if they continue to leverage their momentum, especially if they are willing–and can afford–to make such an absurdly large payment for the acquisition. We all thought it was a large amount when Mojang was bought up by Microsoft in 2014 for $2.5 billion; this deal is more than double that amount.
Luckily for Activision Blizzard, the games made by King Digital Entertainment show no signs of slowing down in terms of catching all of the money that users throw at them on a daily basis even after being on the market for over three years. It seems that the company will do just fine as people are still breaking open candy for that always addictive sugar. I have to say, the potential gains for Activision Blizzard look pretty sweet to me.