Candy Crush maker valued at over $7 billion in IPO

I knew Candy Crush is popular, but does it worth 7 billion? No earning info available... The previous valuation was done by eye-balling. What does it base on this time?

Candy Crush maker valued at over $7 billion in IPO

NEW YORK — Mobile game maker King Digital Entertainment Plc said that its IPO was priced at US$22.50 per share, which would value the maker of Candy Crush Saga at about US$7.08 billion (S$8.97 billion) when it goes public today (March 26).

King’s offering of 22.2 million shares would raise about US$500 million at that price, which is at the mid-point of its planned US$21-US$24 price range.
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http://www.todayonline.com/tech/candy-cr...illion-ipo

Money is overflowing .... it can easily go back to zero. We probably going to see more of such cases before some sense comes into the market. Ofcourse some people will have 101 ways to justify them as long there are suckers.

(26-03-2014, 09:54 AM)CityFarmer Wrote: I knew Candy Crush is popular, but does it worth 7 billion? No earning info available... The previous valuation was done by eye-balling. What does it base on this time?

Candy Crush maker valued at over $7 billion in IPO

NEW YORK — Mobile game maker King Digital Entertainment Plc said that its IPO was priced at US$22.50 per share, which would value the maker of Candy Crush Saga at about US$7.08 billion (S$8.97 billion) when it goes public today (March 26).

King’s offering of 22.2 million shares would raise about US$500 million at that price, which is at the mid-point of its planned US$21-US$24 price range.
...
http://www.todayonline.com/tech/candy-cr...illion-ipo

Wah...Deja vu,just like the dot-com era!
If this one 7bil then Supercell going to be abv 10bil when ipo.

it's all based on reach. So the best thing now is to build a super addictive game and become rich overnight.

(26-03-2014, 09:54 AM)CityFarmer Wrote: I knew Candy Crush is popular, but does it worth 7 billion? No earning info available... The previous valuation was done by eye-balling. What does it base on this time?

Candy Crush maker valued at over $7 billion in IPO

NEW YORK — Mobile game maker King Digital Entertainment Plc said that its IPO was priced at US$22.50 per share, which would value the maker of Candy Crush Saga at about US$7.08 billion (S$8.97 billion) when it goes public today (March 26).

King’s offering of 22.2 million shares would raise about US$500 million at that price, which is at the mid-point of its planned US$21-US$24 price range.
...
http://www.todayonline.com/tech/candy-cr...illion-ipo

http://www.economist.com/blogs/schumpete...sual-games
King’s revenue jumped to $1.9 billion in 2013, from $164m in 2012 (see chart). Almost all of that came from players: King stopped selling advertising space last year. Because the costs of making a game are pretty much fixed, every extra paying user means more profit: last year King earned $567.6m, up from only $7.8m the year before.

[Image: UL6QVc4.png]

~12x earnings. That is only if the company can continue to milk money off candy crush OR come up with new games to keep up with the earnings.

The report also says that two more of King’s games, “Farm Heroes Saga” and “Pet Rescue Saga” are also near the top of the charts. Has anyone in valuebuddies played these games before?

'Candy Crush' maker get crushed in early trade

NEW YORK (MarketWatch) -- King Digital Entertainment, the maker of popular mobile game Candy Crush, started trading down 6% and continued to slide. Analyst had low expectations for the stock, with some calling it a "one-trick pony" and comparing it to fellow mobile games maker Zynga. The IPO was priced at $22.50, in the middle of the expected range. Shares were recently down 10% at $20.22. The company's initial IPO filing, disclosed in February, showed the game maker had seen enormous growth in a few short years, reporting a profit of $567.6 million in 2013.

Interesting headline, candy crush crushed

(26-03-2014, 11:41 PM)yawnyawn Wrote: 'Candy Crush' maker get crushed in early trade

NEW YORK (MarketWatch) -- King Digital Entertainment, the maker of popular mobile game Candy Crush, started trading down 6% and continued to slide. Analyst had low expectations for the stock, with some calling it a "one-trick pony" and comparing it to fellow mobile games maker Zynga. The IPO was priced at $22.50, in the middle of the expected range. Shares were recently down 10% at $20.22. The company's initial IPO filing, disclosed in February, showed the game maker had seen enormous growth in a few short years, reporting a profit of $567.6 million in 2013.

Interesting headline, candy crush crushed

Actually I'm quite surprised that my 58 year old mum is hooked to the farm heroes saga. But i know that she doesn't make any in-game purchase as her account in under me. But I'm pretty sure there will be people buying the in-game credits/gold or etc. Wifey and her peers are crazy about candy crush though again, I did not really hear much about in game purchases. Apart from advertising, I'm guess that that's about their main source of revenue.