Shares tank amid uncertainty over London game studio’s other offerings
The New York flotation of the firm behind Candy Crush, King, proved something of a disaster for investors last night [26th March 2014] with the stock closing nearly 16 per cent down on its opening price. Even so the founders of London games studio, King – the makers of the Candy Crush game – still became overnight multi millionaires. That’s despite the stock diving from $22.50 to $19.08 just moments after the exchange’s opening bell had sounded. King’s CEO, Riccardo Zacconi. and chairman, Melvyn Morris, respectively owned 10 and 12 per cent stakes in the firm prior to the IPO, though it remains unclear how much of their personal holdings they disposed of during the day.
The lacklustre flotation is thought to have reflected concerns that King could turn out to be a one-hit wonder built around Candy Crush Saga, last year’s most popular app on iPhone and Android devices.
The sudden drop in the share price left the firm with a valuation of $5.9 billion, compared to what was expected to be nearer $7 billion.
King – which boasts 324 million monthly users – made profits of $567 million on revenues of $1.88 billion in 2013, but Candy Crush Saga accounts for 78 per cent of the company’s total revenues.