King’s dismal debut dragged down other gaming stocks on Wednesday. Using the “freemium” model, King makes money by selling players extra lives and other add-ons. “Also, there’ve been a lot of high priced IPOs and mergers and acquisitions (of late) and when valuations get frothy, investors get disappointed when returns don’t measure up to expectations.”Ĭandy Crush, a free game, is now a household name and has been downloaded more than 500 million times since its launch on mobile devices. How many bands were the Beatles?” Roger Kay, analyst at research firm Endpoint Technologies Associates said. “Once you have a hit, it’s hard to make a string of hits.
The company offers over 180 games but its two-year-old “Candy Crush Saga” game, in which users move candies to line up at least three of the same colour, accounted for over three-quarters of King’s revenue for the last three months of 2013.
Mobile gaming executives had looked to London-based King’s IPO, the largest by a gaming company since Zynga Inc went public in 2011, to help sweep aside scepticism over a notoriously fickle, volatile market.īut King’s shares fell to a low of $19.08 (11.51 pounds) in morning trade from their IPO price of $22.50, which had valued the company at about $6 billion. A woman poses for a photo illustration with an iPhone as she plays Candy Crush in New York February 18, 2014.
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