On November 2nd 2015, Blizzard Entertainment was making one of gaming’s most expensive investments. Whether it still remains debatable, Blizzard is the biggest gaming company in the world, able to attract millions of players towards its games on a yearly basis and making more money than any company can even dream of. On November 2nd 2015, Activision Blizzard purchased King Digital Entertainment for $5.9 billion.
How far has Blizzard gone? More than Microsoft apparently. This late year investment makes the purchase of Mojang, the Minecraft maker, back in 2014 look like a joke. The moment developers saw that Farm Heroes and Pet Rescue Saga were not going to score the same numbers as Candy Crush did, King Digital was pretty much considered a one shot deal.
But Activision Blizzard saw something different in King Digital. After all, it is not every day that the “World of Warcraft” developer stops by and decides that you are worth its money. The deal was discussed over and over again until the final score was set and it is safe to say that King Digital Entertainment belongs to Activision Blizzard now. For good.
Needless to say, this is a long term investment. Why would developers for such “serious” games pay for a time-waster game like Candy Crush, which you only play on your way to work or at night, before you go to sleep. But we just have to wait until 2016’s spring, when we will see all those 500 million users piling up to play games every day. That’s when the true nature of this investment will show itself.
It appears that the other games within King Digital are doing close to nothing since Candy Crush users amount up to 70% of the game’s players. Thus it might not be a total surprise if Activision Blizzard decide to shut down the other two and stick to Candy Crush alone, or even come up with a new, better game that will make cash spike once again.
Blizzard has nothing to fear until all preparations are complete. After all, it is not like all of its games are going to disappear overnight. World of Warcraft is still making at least $50 million a month, Hearthstone is also a major cash-in tool and even Heroes of the Storm is widely known for its rather expensive purchases. Blizzard is the biggest gaming company in the world and nobody can really mess with this titan.
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