Candy Crush Saga maker King files for US IPO

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by CBR Staff Writer| 19 February 2014

British game maker looking to float on New York Stock Exchange.

King Digital Entertainment, the British developer of mobile phone puzzle game 'Candy Crush Saga', is looking to float on the New York Stock Exchange (NYSE).

The gaming firm has filed for US initial public offering (IPO), in a bid to raise $500m for operational capital and acquisitions, which would value it over $5bn.

King reported 7,000% rise in profits last year, with revenue and net profit reaching $1.88bn and $567.6m, compared to $164.4m and $7.8m respectively in 2012.

The British game maker said in its filing that only a small number of games currently make substantial majority of revenue.

"If the gross bookings of our top games, including Candy Crush Saga, are lower than anticipated and we are unable to broaden our portfolio of games or increase gross bookings from those games, we will not be able to maintain or grow our revenue, and our financial results could be adversely affected," the company added.

Going public would turn out to be a profitable affair for the game maker's founders, with its chief executive Riccardo Zacconi receiving over $500m from his 10% share, while Apax Partners, the largest share holder could receive around $2bn from its 45% stake.

Set up in 2003, the British mobile gaming firm offers nearly 150 games in 14 languages through mobile phones, Facebook in addition to its website, while boasting nearly a billion gameplays per day from its users.

Speculations that several tech firms would file for IPO during the year were mainly fuelled by the successful floating of Twitter in November and a rise in Facebook's share price.

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