Candy Crush developer King.com files for IPO
King.com has filed to go public. King.com is known for being the developer behind the Candy Crush game. King.com will likely trade on the New York Stock Exchange with the “KING” ticker symbol. Candy Crush was the top earning title last year on any mobile platform.
King.com games are seeing around 1.2 billion daily plays from 128 million daily active users. Around 73% of them come from mobile devices. King.com launched in 2003.
King.com went from a profit loss of $1 million in the first quarter of 2012 to a profit gain of $269 million in Q4 of 2013. King.com is planning to raise $500 million through the IPO, according to filings.
There are some potential risk factors that King.com will face as a public company. King.com faces the risk of a small number of games generating a substantial majority of their revenue. Developing new games could just recirculate their existing audience instead of growing a new one. King.com said that they are going to strengthen their new game and I.P. development pipeline though. The company is also going to expand their existing titles to new platforms and geographies.
Around 78% of King.com’s total gross bookings came from Candy Crush. In 2011, King.com was generated around $64 million. After launching Candy Crush, King.com generated $1.88 billion. King.com’s revenues decreased between the third and fourth quarters last year.