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 Candy Crush Saga  studio King files for IPO
Candy Crush Saga studio King files for IPO
September 27, 2013 | By Mike Rose




It was suggested earlier this year that Candy Crush Saga studio King was preparing an initial public offering. Now the company has gone ahead with its IPO plans, filing paperwork with the Securities and Exchange Commission in the U.S.

As reported by The Telegraph, the British company has quietly handed over its S-1 form to the SEC -- the filing used to register business and financial securities in the U.S.

When King eventually floats on the Nasdaq exchange, it will be one of the biggest IPOs to come out of a UK-based tech company in years. The Telegraph reports that the firm could be valued at around $5 billion. This compares to Zynga's IPO valuation of $7 billion back in 2011.

A spokesperson for King told Gamasutra, "we're not commenting on any IPO questions I'm afraid."

[Update: This article originally stated that Zynga's IPO was valued at $1 billion, when in actual fact the figure was $7 billion. Apologies for the error.]


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Comments


Harry Fields
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Pump and Dump!

Micah Hymer
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Will be interesting to see if the market has learned anything since Zynga.

Terry Matthes
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Who needs control of their company anyway...

Troy Walker
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seems like a terrible idea to me.. the game is a fad. In a couple months, it will be something else and they'll be in trouble.

Harry Fields
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This is the trend of mobile/social. Since most apps are throwaways, you have to keep churning them out. If you get one that sticks and makes money, suits who don't play games and don't understand games think you've found some special sauce when all you've really found is luck. The IP owners are wise enough to realize they have a fad, so they have to go public ASAP to get as much money as possible to give themselves a huge paycheck before the fad and company collapses and said fad dies. Very, very few of these companies have solid fundamentals. I don't realize why any investor would take a serious look at them.

Dave Sanders
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"all you've really found is luck."

That is my favorite quote of the day now.

Ramin Shokrizade
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It seems to me that the UK Office of Fair Trading Principles that were recently released (http://www.gamasutra.com/view/news/201020/UK_fair_trade_body_thre
atens_enforcement_action_over_inapp_purchases.php) could devastate King.com's market share after the April 1st, 2014 enforcement date. Thus this is a REALLY good time for King to IPO so that they can "Pump and Dump" at inflated market value as Harry Fields so eloquently stated. If investors make the same mistake here that they did when they fell for the Zynga IPO, I will be less sympathetic since this game should be fairly well understood by now.

Todd Masten
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A five billion dollar evaluation?!? That is FIVE times the inflated Zynga number. Does anyone trust this number?

Harry Fields
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Book & asset value? meh... definitely not worth a 6 bln valuation
historical earnings?
cash flow or future earnings? Certainly not worth that valuation.
industry outlook? depends on what they have in the hangars... but historically, lightning doesn't strike twice... so I'd have to view their outlook as very risky.

Anyone who bites on this would do better going to Vegas for the weekend.

Matt Cratty
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Gee, what was the phrase about history repeating itself?

Eric Finlay
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There is much more to King than just Candy Crush (although that game is ridiculously profitable). They have a strong browser based skill gaming business that they might be trying to bring into mobile over the next couple years. There are a couple startups already doing this (like mine).

Harry Fields
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But is it worth a 5 BILLION$ valuation? They average .9 to 2.4 mil a day (so let's be generous and assume 600 Million/year in net revenue (probably ~100 mil gross). I'd give it a 5x valuation IFF I was convinced they could keep delivering Candy Crush Saga-like performances. Until they establish that track record, any investor would have to be a little wary and skew towards a 4x valuation... but they're trying to get twice that? Right now, in tech... it's all a bursting bubble. You cash out at the high point and start over somewhere else while someone other than you rides the coaster back into the station of annual losses.

Eric Finlay
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Yeah, probably not worth 5 billion, you're right.


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