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Tuesday, November 3, 2015

Activision Blizzard to buy King Digital in deal worth $5.9 billion

  • Brings together makers of ‘Call of Duty,’ ‘Candy Crush Saga’
Video game maker Activision Blizzard Inc (ATVI) said it will buy "Candy Crush Saga" creator King Digital Entertainment (KING) for $5.9 billion to strengthen its mobile games portfolio.

ABS Partners CV, a unit of Activision Blizzard, will acquire King shares for $18 each in cash, representing a premium of 16 percent to King's closing price on Monday.

** charts before acquisition **

The addition of King's mobile games will position Activision as a global leader in interactive entertainment across mobile, console and PC platforms, Activision said in a statement.

Video game publishers are shifting to the lucrative digital business from physical sales of games as consumers shift from consoles to playing on smartphones and tablets.

The fast-growing mobile gaming segment is expected to generate more than $36 billion in revenue by the end of 2015, according to Activision.

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