In what seems to be a massive and surprising acquisition, Activision Blizzard has just bought King Digital Entertainment for a whopping US$5.9 billion. According to reports, the deal is vastly considered as the gaming industry's largest deal ever since Microsoft purchased Minecraft about a year ago.
King Digital Entertainment had built a monumental network of users on the largest social network, which is Facebook, as well as mobile devices. The games they have published had about 474 million active users per month as of the third quarter of this year. This would greatly add to the massive user base Activision already owns such as Call of Duty and Destiny. Not to mention its colossal properties such as World of Warcraft and Starcraft when the company merged with another major player in the gaming industry almost eight years ago.
Now, Activision Blizzard's gaming portfolio is about to get another boost as it adds the biggest name in social gaming. Quite simply, games produced by King Digital Entertainment have received much appeal due to its ease of use and accessibility to its users. The only requirement for people to play their games is an online browser, or a mobile device whenever they install the app.
According to reports, Activision Blizzard will gain the potential to reach more audiences around the world whatever devices they use, thus enabling the company to deliver even greater games to bigger audiences. It's also important to note that females account to about 60% of King Digital Entertaiment's total players. As such, the move would also let the company broaden its demographic even further.
However, reports suggest that King Digital Entertainment will be capable of guaranteeing its continuous success. Although the company has been trying to lessen its reliance on its most popular game, Candy Crush Saga, when it launched three years ago, it still makes about a third of their profits.
