Wednesday, 26 March 2014

Candy Crush games developer King valued at over $7bn

The games developer behind Candy Crush Saga, King, has been valued at over $7bn (£4.2bn) after it raised $500m listing on the New York Stock Exchange.

It sold 22.2 million shares priced at $22.50 per share - the mid-point of the range the firm had initially set.

King said it plans to use the money raised for "working capital" and "other general corporate purposes, which may include acquisitions".

Right, I’m not particularly interested in playing silly little games on my mobile phone when there are consoles available, but what I’m interested in and frankly amazed at is how King can be valued at $7bn.

Where does that number come from, this is just as bad as that WhatsApp thing that Facebook bought for $11bn, who decides that these companies that produce a cheap little app are worth so much, how can that figure be justified?

What happens in six months time when Candy Crush is replaced by the next game that apparently everybody is obsessed with and features in an Amazon advert with a crazy ginger lady telling a bemused customer how her obsession is becoming a ‘real problem’.


I’ll tell you what’s becoming a real problem a company that makes a game for your phone and is valued at $7bn, that’s a real problem.        

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