Feeds

Candy Crush King sees IPO go sour as stock price heads south

Games maker goes full Zynga in trading debut

Designing a Defense for Mobile Applications

Mobile games firm King Digital failed to take the stock market by storm Wednesday as the firm's initial public offering (IPO) saw its stock price decline by more than 15 per cent at close of trading.

The company made famous for its Candy Crush mobile game had been seeking a valuation of roughly $7bn wen it offered its shares on the market at an estimated cost of $21-24. Opening at a hopeful $22.50 share price, the company hoped that investors would buy into its vision for the mobile games market.

Unfortunately, Wall Street was hardly sold on the freemium games developer. In its first day on the market the company saw its stock fall by more than 15 per cent over the course of the day. By after hours trading Wednesday afternoon, King's stock was sitting at $19 even.

While most famous for Candy Crush, King Digital has developed a number of other titles for the iOS and Android platforms, some of which have performed well. According to the Apple iOS App Store, King titles Farm Heroes Saga, Pet Rescue Saga and Papa Pear Saga were all among the platform's Top 50 grossing games.

The games use a 'freemium' model, meaning they can be played at no cost with premium and add-on items being sold through micro transactions. The company said in its SEC filing that it logs more than 1.4 billion game plays every day.

"Casual gaming is large and growing quickly, driven by key technology and consumer trends, creating the potential for leading entertainment franchises to emerge from the category," the company told the SEC in its filing.

"The proliferation of mobile devices is dramatically expanding the global gaming audience, much of which is attracted to casual titles."

The company has been known to be fiercely protective of its brands, going so far as to attempt to trademark the word "Candy" in software titles.

The lackluster performance of the IPO is reminiscent of the 2011 Zynga public offering. Like King this year, Zynga at the time was pitching Wall Street on a social gaming model based on micro transactions through social and mobile platforms.

Zynga similarly fell short in its debut, with shares falling by 5 per cent in the company's first day on the market. The company was later sued by investors who accused the firm of misleading them on the company's finances. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.