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June 19, 2013

'Candy Crush Saga' Maker Planning Sweet Deal for Stockholders with New IPO

By Steve Anderson, Contributing TMCnet Writer

When a new mobile game does particularly well, it's not surprising that some would take notice of the firm that generated it. After all, the mobile game market is stuffed full of titles, many of which will likely never net a second glance from potential players looking for the next good time and a way to kill a few minutes at a clip. “Candy Crush Saga” has made some big strides in that market of late, sufficiently so that its publisher, Midasplayer International Holding Co., is in the process of getting an IPO together.



Midasplayer—perhaps more familiarly known as King—is reportedly in talks with several banks to bring out a U.S. IPO. So far King has consulted with major names like J.P. Morgan Chase & Co., Bank of America and Credit Suisse Group AG. Naturally, this is still very early-stage stuff, so any pricing or timing issues related to such an IPO—if it ever even materializes at all—are still on the back burner as yet.

While King has had quite a bit of success in the market, both in terms of its mobile gaming and its other line of gaming offerings online, an IPO from the firm is still being regarded in many sectors as a larger overall test of investors' tolerance for online gaming firms. Considering what happened to—what is still happening to, essentially—Zynga (News - Alert) in the days following its IPO when shares lost fully 70 percent of initial value, it's probably going to be difficult to see King in a different light. But when mobile game makers can strike that right “Angry Birds”-style chord with gamers, possibilities begin to abound.

But King, according to reports, is no one-trick pony. King reports that fully 70 million gamers a day settle in for one or more King releases, including titles like “Farm Heroes Saga” and “Pet Rescue Saga.” That's going to be a tool of no insignificant leverage when the likely comparisons to Zynga get started in earnest. What's more, King isn't even the only gaming company currently looking at an IPO. Kabam is reportedly planning to take itself public by 2014, though the maker of “Kingdoms of Camelot” and “Fast And Furious 6” hasn't said much about those plans since earlier plans were noted. Additionally, GungHo Online Entertainment—a Japanese game maker that has brought out titles like “Puzzle and Dragons”—recently noted that its market capitalization managed to exceed that of Nintendo.

With a set of new consoles looking to emerge in the coming months, and plenty of games to follow, investors are likely looking for consumer spending on video games to pick up. That's not exactly a bad bet, either; with more and more people looking to stay closer to home for entertainment, video games are proving an excellent alternative to travel. Tack that onto the substantial market for casual gamers, thanks to the proliferation of mobile devices, and the end result is noteworthy in its own right.

There may be big days ahead for gaming companies, and mobile gaming companies as well. Whether King actually goes IPO, and whether or not it's a success, is the kind of thing only time will tell. But betting on people to play games—whether staying home or going mobile—is shaping up to be a smart idea.




Edited by Alisen Downey
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