Was the Acquisition of King by Activision Blizzard for $5.9 Billion Worth It

Online games are big business, and each company is vying to grab the biggest piece of that financial pie for themselves as they possibly can. Part of this process is the acquisition of smaller game companies by larger companies or mergers between companies to consolidate their interests. Late last year, news about Activision Blizzard buying King, the maker of mobiles games like Candy Crush Soda Saga, broke, and the price tag was a cool $5.9 billion. Just a few days ago, this deal was finalized. Yet people began to question whether such a deal was a good idea or not right from the very beginning.

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itsjustexuma1021d ago

They could of used that money to actually create groundbreaking new IPs or studios

Pandamobile1021d ago

That's not what Activision does.

1020d ago
_-EDMIX-_1020d ago

Or they could use it on a company that is known to make hundreds of millions of dollars a year...

What many folks need to understand is when purchasing or creating teams you still have to factor in operating costs it was rumored that it was costing Sony over six hundred million dollars to keep up and exactly what did they produced for Sony that even help them greatly?

On the contrary as a businessman I believe Activision's acquisition of King might be one of the smartest acquisition Move done in recent memory because the casual market is a huge huge cash cow.

We can all sit back and fantasize about what could have been made with that money in regards to triple-a games but folks need to also remember that just because it's a big publisher in a triple A game doesn't mean it can't fail.

I'd rather spend the money on something that's guaranteed to make and generate revenue quickly VS take a huge risk on an investment that may not pay off in regards to Big Triple A games. It's very very difficult to hang with the juggernauts that are at the top of Triple A.

With them already having a huge lucrative deal with destiny and having Call of Duty I think it was correct that they diversified themselves by having this casual company

brokasfawk1021d ago

They'll make that money back with the next CoD or Destiny

LightofDarkness1020d ago

Not even close. They probably earn about 1 billion per COD title over its lifetime (declining every year), but that's just pure revenue. How much of that they keep as profit is much lower. All of the main line titles these companies have are big, but shrinking. Overwatch will do well, but it won't do COD/Diablo/WOW numbers.

SonicUnderpit1020d ago

That and people forget how many people some of these mobile games reach; as well as how much money they can generate. Good move...