Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

King IPO: Will Candy Crash?

Mar 26 2014, 2:55am CDT | by

11 Updates
Japanese Giant Mitsui Leads $60M Investment In A Startup That Turns Pollution Into Pure Money
 
 

YouTube Videos Comments

Full Story

King IPO: Will Candy Crash?

King Digital Entertainment priced its IPO and is preparing to list on the New York Stock Exchange tomorrow, under the ticker “KING.”  The digital gaming company priced at $21.50 per share and is set to raise $500 million in the offering, valuing the company above $7 billion.

The investor outlook for the gamemaker is mixed.  Those in favor of King, point out that the company has built up a digital empire with 180 games played 1.2 billion times per day. King boasts 128 million daily active users.

King is also profitable, with $568 million in net income in 2013, on $1.8 billion in revenue. This is a sharp increase from $8 million in profit on $164 million in revenue the year before.

Yet 78% of King’s gross bookings are all tied to one hit game; Candy Crush. And 95% of its revenue is tied to three games; Candy Crush Saga, Pet Rescue Saga and Farm Heroes Saga. If these games lose popularity, it could pose a significant threat to King’s earnings.

King acknowledges this risk in its IPO filing. “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.”  Gaming companies must continuously reinvent the wheel to remain competitive.

“Investors will be concerned about the hit driven nature of casual games and the fact that over three-quarters of the company’s Q4 ’13 bookings were derived from a single game,” warns Tim Keating, President at Keating Investments.

King has drawn comparisons to Zynga, the maker of Farmville and Words with Friends. Although its stock has risen substantially over the past year, Zynga is  still trading at less than half of its original offering price from 2011.

“We find little to like in this IPO. It’s very reminiscent of the Zynga IPO on multiple levels, including its high product concentration risk in just one game,” says Sam Hamdeh, CEO of Privco.

Founded in Sweden in 2003, King struggled  before it released Candy Crush.  Some early employees were less optimistic about the direction of the company.  Co-Founder Toby Rowland left King in 2011, selling his shares for $3.1 million. Today, his stake would have been worth nearly a billion.

King’s largest shareholder is private equity firm, Apax, with a 48% stake. Chairman Melvyn Morris has a 12% stake and CEO Riccardo Zacconi has a 10% stake.

There have been 60 U.S. IPOs this year, according to Dealogic. This is the fastest pace since 2000, when there were 125 in the same period.

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update

Update: 11

Dwight King avoids arbitration with Kings

Source: CBC Sports

Two-time Stanley Cup champion Dwight King and the Los Angeles Kings avoided arbitration Wednesday, reaching terms on a three-year, $5.85-mil ...
Source: CBC Sports   Full article at: CBC Sports 20 minutes ago
 


Advertisement


Update: 10

UP biscuit baron's son held for getting wife murdered

Source: Times of India

Piyush, son of UP’s biscuit king Om Prakash Dasani confessed before cops that he got his wife killed because he was unhappy with her and wanted to marry another woman with whom he was in a torrid roman ...
Source: Times of India   Full article at: Times of India 2 hours ago, 4:50pm CDT
 

More From the Web

Update: 9

Stars get real: Cooper hits Burger King

Source: cnn

...
Source: cnn   Full article at: cnn 2 hours ago, 4:50pm CDT
 

Update: 7

Live: Steve King Presents Border Amendment at Rules Committee

Source: Big Government

Rep. Steve King (R-IA), a top immigration hawk, has offered an amendment to the House GOP border crisis bill that includes language intended to prevent President Obama from expanding his current executive amnesty program. Obama has threatened to expand the program to as many as 6 million individuals with a new executive action.  King is presenting the amendment to the House Rules Committee, which decides which amendments receive a vote on the House floor. Rep. Pete Sessions (R-TX), chairman of ...
Source: Big Government   Full article at: Big Government 3 hours ago, 4:23pm CDT
 

Update: 6

Stacy Peralta's 6 Principles for Capturing Humanity in Commercials

Source: AdWeek

People often question why documentary filmmakers direct commercials. What's the motivation? Ask just about any documentary filmmaker worth his or her salt, they'll tell you. It's the opportunity to capture humanity in short form. Capturing humanity is a very important part of making an effective commercial, or any film. Let me preface that statement. It's important for the soft-sell approach, not the hard-sell campaigns with actors holding up product and announc ...
Source: AdWeek   Full article at: AdWeek 3 hours ago, 4:18pm CDT
 

Update: 5

Congratulations: Lil Mo Shows Off Engagement Ring From Her Cheating Boxer Boo

Source: Bossip.com

Engagement ring or make up ring???? Lil Mo Shows Off Engagement Ring From Dynamite KO Looks like Lil Mo is an engaged woman again just FOUR months after announcing her split from her husband. The “R&B Divas” star whose dubbed herself the“ratchet Elizabeth Taylor”, recently showed off a diamond sparkler from her braided up boxer King despite reports that he was sexting a fan and requesting a tryst while a “well endowed” man watches. Alrighty… Congrats on finding love (again) Mo ...
Source: Bossip.com   Full article at: Bossip.com 4 hours ago, 2:57pm CDT
 

Update: 4

10 Best Spoofs Of Nicki Minaj “Anaconda” Cover (Lion King, Simpsons, & More)

Source: WNKS-FM Kiss 95.1

Nicki Minaj has cause quite a stir with her latest album cover she tweeted out last week. Her album “Anaconda” is dropping soon and on the cover, Minaj is squatted down with her entire large butt on display! Tons of spoofs have been posted online that are hilarious! “Anaconda”, Minaj’s 3rd studio album was set to be released on July 28th but has recently been pushed back to Aug. 4th. She teased the album by releasing the cover art whi ...
Source: WNKS-FM Kiss 95.1   Full article at: WNKS-FM Kiss 95.1 4 hours ago, 2:42pm CDT
 

Update: 3

Not so different after all: Pemco puts longtime South Lake Union HQ up for sale

Source: Seattle Business Journal

When it comes to real estate, Pemco Insurance isn't so different after all. The Seattle insurance company, with its popular "We're a lot like you, a little different" tagline, is selling its high-profile headquarters on a full block next to Interstate 5 in South Lake Union. Pemco hopes to remain in the neighborhood, though, where property values are quickly climbing. Other owners, such as KING TV, are selling large South Lake Union properties. This spring, ...
Source: Seattle Business Journal   Full article at: Seattle Business Journal 4 hours ago, 2:39pm CDT
 

Update: 2

You Will NOT Get Tired Of Hearing Every Single Samuel L. Jackson 'Motherf**ker' In This Amazing Super Cut!

Source: PerezHilton

No one curses like Samuel L. Jackson. The Avengers star made a motherf**king name for himself with his intense motherf**king stare and his even more intense motherf**king mouth! But there's one word Sam says like no one else. And thanks to some motherf**king aficionados, we now have every one of the motherf**kers in one place! See the (do we even have to say NSFW?) super cut of all 171 of Samuel L. Jackson's infamous utterances of the word ...
Source: PerezHilton   Full article at: PerezHilton 5 hours ago, 2:11pm CDT
 

Update: 1

Below-the-Line Bookings

Source: Latino Review

The Gersh Agency has booked producer Jean Higgins (pictured left) (“Lost”) on Amazon Studios pilot “Man in the High Castle,” helmed by David Semel; production designer Michael Hanan (“The Bridge”) on Spike TV miniseries “King Tut”; and editor Joe Leonard (“Glee”) on Fox series “Empire.” Innovative Artists bookings include visual effects producer Nikki Pen ...
Source: Latino Review  Full article at: Latino Review 5 hours ago, 1:45pm CDT
 

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Master of Craft Game Review
Master of Craft Game Review
A brand new role-playing game (RPG), Master of Craft (MoC) is fully rendered in 3D. Avid fans and lovers of RPGs enjoy its unique economy where they are allowed to craft and produce their own armors and weapons. Moreover, players can also operate their market and experience to be a merchant and run their own town. The objective of the game is to build a large empire of buildings and focuses solely on crafting armors and weapons.
 
 
Liam Neeson and Natasha Richardson&#039;s Final Moments
Liam Neeson and Natasha Richardson's Final Moments
Liam Neeson's opening up about the couple's final moments before taking Natasha Richardson off life support.
 
 
Oakland Raiders Confirm Talks with San Antonio Officials
Oakland Raiders Confirm Talks with San Antonio Officials
The Oakland Raiders confirmed they had discussions with San Antonio, Tex. officials on possibly moving the team to Texas, per The San Antonio Express-News.
 
 
Shadow Fight 2 Game Review
Shadow Fight 2 Game Review
The makers of the famous Shadow Fight (a very popular fighting game on Facebook) now present to you its sequel – Shadow Fight 2.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.