Candy Crush maker valued at over $7 billion in IPO

[yawnyawn]

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.

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~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?