Europe delivers another huge success in gaming with the purchase of King by Activision Blizzard. This deal is a classic example of a dominant incumbent buying the leading player in an emerging category. In addition to significant cashflow and a huge footprint, King brings Activision critical capability in building and monetising mobile games.
The buyout of ‘Candy Crush Saga’ maker by the publisher of ‘Call of Duty’ signals a big mobile expansion. Activision Blizzard, which already owns many of the biggest franchises in PC and console gaming, wants to cement a leadership role in the mobile video game industry. Late on Monday news broke that the publisher of franchises such as Call of Duty and World of Warcraft will purchase King Digital Entertainment , creator of Candy Crush Saga, for $5.9 billion.