'Candy Crush' Maker King is Zynga (ZNGA) on Steroids
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Zynga, Inc. (Nasdaq: ZNGA) has been solid at making addictive games in the past, but there's one thing that has eluded the company: consistent profits.
Recently, it was speculated that Zynga rival King would be filing for a U.S. IPO. While nothing official has been disclosed yet, some estimates have the company ringing up $1 million to $3 million in revenue each day, putting a potential valuation of $5 billion on the company.
This is due to King being able to make fast, addictive games, with users willing to shell out real money for upgrades.
After forming about 10 years ago, King received €34 million from private equity firms Apax Partners and Index Ventures in 2005 and has been a profitable undertaking ever since.
As stated in Reuters, King Chief Creative Officer Sebastian Knutsson said the company's big game --
What makes
Needless to say,
With King's stable of games 150 deep, over 1 billion gameplays being done each day, and a stable of new offerings at the ready, the company should be able to prove what Zynga never could: social games can be fun and profitable.
Shares of Zynga are down 3.8 percent on a pressured market session.
Recently, it was speculated that Zynga rival King would be filing for a U.S. IPO. While nothing official has been disclosed yet, some estimates have the company ringing up $1 million to $3 million in revenue each day, putting a potential valuation of $5 billion on the company.
This is due to King being able to make fast, addictive games, with users willing to shell out real money for upgrades.
After forming about 10 years ago, King received €34 million from private equity firms Apax Partners and Index Ventures in 2005 and has been a profitable undertaking ever since.
As stated in Reuters, King Chief Creative Officer Sebastian Knutsson said the company's big game --
Candy Crush-- fits the bill because it's equal parts pain and fun and also fits with users' short attention spans.
What makes
Candy Crushsolid is that the game has a lethal combination of elements: candy pieces like in Candy Land, shiny objects like Bejewelled, and grid-like action of Tetris. Players then become addicted and, once they die/fail, must wait 30 minutes before restarting or pay for more lives. The company also integrated social media aspects into the game to encourage competition.
Needless to say,
Candy Crushhas been a top game on Apple's (Nasdaq: AAPL) App Store and has been number one on Facebook (Nasdaq: FB) apps for at least the last nine months.
With King's stable of games 150 deep, over 1 billion gameplays being done each day, and a stable of new offerings at the ready, the company should be able to prove what Zynga never could: social games can be fun and profitable.
Shares of Zynga are down 3.8 percent on a pressured market session.
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