Activision Blizzard, who holds properties such as the long-standing WarCraft franchise and industry favorites like Call of Duty will be assimilating the King Digital name under its umbrella of gaming properties for $18 per share, coming in at 20% over what the October 30 closing price. Although coming into the Activision Blizzard family as a new acquisition, King Digital will remain standing on its own two feet, retaining its own brand identity for the foreseeable future.
With the evident success of Hearthstone as a mobile compatible game, Activision Blizzard is eyeing mobile gaming as new territory in which to spread its wings. Some investors are concerned that the failure of King Digital to replicate the success of Candy Crush may indicate that it was a “one-hit wonder” according to a Reuters article on the acquisition. King’s revenue is still highly reliant on Candy Crush – and like World of Warcraft’s subscriber base – that number is falling. Both companies are hoping for a mixing of resources and talent that will bring increased revenue and subscribers back up to previous levels.