Activision to buy King for USD 5.9 billion

News General Global 3 NOV 2015
Activision to buy King for USD 5.9 billion
Activision Blizzard and King Digital Entertainment have signed a definitive agreement under which Activision subsidiary ABS will acquire all of the outstanding shares of King for USD 18 in cash per share, for a total equity value of USD 5.9 billion. The price implies a 20 percent premium over King’s closing price on 30 October. The two companies’ boards unanimously approved the acquisition being implemented under a scheme of arrangement under Irish law. Pending approval by King’s shareholders, the Irish High Court and antitrust authorities, the acquisition is expected to be completed in spring 2016. 

The combined company will have more than half a billion monthly active users in 196 countries and will be a leader in mobile gaming. It will combine King's games Candy Crush Saga and Candy Crush Soda Saga, two of the top five highest-grossing mobile games in the US, with Activision Blizzard's games including Call of Duty and World of Warcraft franchises. King will continue to be led as an independent operating unit by CEO Riccardo Zacconi, Chief Creative Officer Sebastian Knutsson and COO Stephane Kurgan. 

Activision Blizzard believes the acquisition will add to 2016 estimated non-GAAP revenues and earnings per share by approximately 30 percent and significantly add to 2016 estimated free cash flow per share. King chairman Gerhard Florin commented, "The acquisition provides a return to King shareholders through the premium that it provides to King's share price and the immediate liquidity that the acquisition will provide to all of our shareholders upon completion. The King board of directors believes that Activision Blizzard's cash offer is attractive given the balance of future opportunities, risks and competitive forces confronting King's business."

Categories:

General

Companies:

Activision Blizzard,  King Digital Entertainment

Regions:

Global

Tags:

Games, Wireline, Wireless, M&A buyouts & divestments

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