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Activision Blizzard Acquires King Digital

Published by: Frank Galvano on 12th Nov 2015 | View all blogs by Frank Galvano

Activision Blizzard Acquires King Digital

Activision Blizzard revealed Thursday it has agreed to acquire King Digital Entertainment, the Irish based maker of Candy Crush Saga, for the tidy sum of $5.9 billion. The purchase price works out to just about $18.00 per share, or a 20 percent premium over King Digital's closing price on Wednesday. The deal has already been approved by the board of directors at each company, but King Digital shareholders must still approve the sale. The deal must also gain approval of Irish regulators before the deal is finalized, which the companies hope to occur by next spring.

Activision Blizzard is already one of the biggest game makers in the world, with popular titles like Call of Duty and Destiny, as well as the popular online roleplaying game, World of Warcaraft. The acquisition of King Digital will help Activision establish itself in the burgeoning mobile gaming market, as its Candy Crush Saga is still the third most popular app in Apple's app store some three years after it was released. News of the acqusitioon pushed bot stocks slightly higher in Thursday trading.

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