What's Happening?
Activision Blizzard has finalized its acquisition of King Digital Entertainment, making it the largest game network globally with over 500 million users. The acquisition, valued at $5.9 billion, was completed through ABS Partners C.V., a subsidiary of Activision Blizzard. This strategic move aims to leverage King's popular franchises, such as Candy Crush, alongside Activision's existing portfolio, including Call of Duty and World of Warcraft. The acquisition is expected to enhance Activision Blizzard's reach across mobile devices, consoles, and PCs, while King will continue to operate independently under its current leadership.
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Why It's Important?
The acquisition significantly boosts Activision Blizzard's position in the gaming industry, particularly in the mobile gaming sector, which is a rapidly growing market. By integrating King's successful mobile games with its own franchises, Activision Blizzard can expand its audience and increase revenue streams. This move also reflects the company's strategy to diversify its offerings and strengthen its competitive edge against other major players in the gaming industry. The acquisition is likely to impact the company's financial performance positively, with projected revenues of $6.25 billion and operating income of over $2 billion for 2016.
What's Next?
Following the acquisition, Activision Blizzard plans to explore new ways to engage audiences with its franchises across various platforms. The company aims to capitalize on King's expertise in mobile gaming to develop innovative gaming experiences. Additionally, Activision Blizzard will focus on integrating King's operations smoothly while maintaining its independence. The acquisition may also lead to further strategic partnerships and expansions in the future, as the company seeks to solidify its position as a leader in interactive entertainment.
