King.Com Looks To Succeed Where Zynga Failed With IPO Filing
Social gaming generates billions of dollars as millions of us enjoy playing these addictive games on Facebook and our mobile devices. Candy Crush Saga is one of the current global hits with over 46 million Monthly Active Users. Developed by King, Candy Crush Saga has managed to surpass the legendary FarmVille 2 as the most popular game on Facebook.
The London Based King.com is now one of the hottest gaming companies around. While founded in 2003 they have now overtaken Zynga who were once considered the main player in the social gaming arena. In line with their current success they are reportedly in the process of making a confidential IPO offering. It remains confidential as any company with less than $1 billion in revenue are permitted under the JOBS Act to keep filings confidential until shortly before their actual offering.
According to an analyst from Wedbush Securities in Los Angeles the IPO offering is set to be based on a value of $5 billion to $7 billion. According to Pachter this value is justifiable as King have proven their staying power with four global hits. This is borne out by their sales that were up from $500 million in 2012 to $1 billion this year.
Anyone indulging in social games on Facebook or mobile devices will be familiar with King’s major hits like Candy Crush Saga and Pet Rescue Saga which both enjoy the top two spots on Facebook’s monthly active users. It also features among the top downloads on mobile platforms like Apple’s iOS and Android based devices.
Another interesting aspect to consider is the restructuring of Zynga under newly appointed CEO Don Mattrick.While the seemingly endless obstacles Zynga have faced since their IPO launch in Late 2011 are well known, their share price has rebounded 63% this year. While the road to the top of the social gaming leader board is tough for them, it would be foolish to rule this out. In the meantime the shifting tides are with companies like King who seem to be on a winning path. Following their IPO will be educational for all and it remains to be seen if they live up to the hype and remain top dogs or like Zynga plummet after reaching the peak.