Business

Maker of Candy Crush Game Seeks Valuation Near $7.6 Billion in IPO

“Candy Crush Saga” accounts for about 80 percent of the revenues of King Digital Entertainment.
PHILIPPE HUGUEN/AFP/Getty Images
“Candy Crush Saga” accounts for about 80 percent of the revenues of King Digital Entertainment.

NEW YORK — If investors are as enthusiastic about buying King Digital Entertainment as players are about its blockbuster hit, the puzzle game “Candy Crush Saga,” the game maker could grab a lofty valuation.

King disclosed Wednesday it hopes to raise as much as $532.8 million in its forthcoming initial public offering, attaining a value of nearly $7.6 billion. The company hopes to price its shares at $21-$24 apiece, it said in an updated prospectus.

If King sells its shares at the top of this range, investors would value King roughly 54 percent more than they do Zynga, the last mobile game giant to go public. And its market value would be only $2 billion less than that of Electronic Arts, one of the biggest video game makers.

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That would be a testament to the meteoric success of “Candy Crush Saga,” which draws an average of 97 million users every day trying to line up three or more pieces of matching virtual confections. The title’s success has suddenly made King, which has development studios in London, Sweden, and San Francisco, into one of the biggest upstarts that the gaming world has seen in years.

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The company reported nearly $1.9 billion in revenue last year, up from just $164 million in 2012.

New York Times

Nearly 80 percent of those sales come from “Candy Crush.”