Did Activision Buy Candy Crush? Unraveling the Sweet Deal
Yes, Activision Blizzard did indeed buy Candy Crush. The acquisition was a significant move in the gaming industry, bringing the mobile gaming giant King Digital Entertainment, the creators of Candy Crush Saga, under the Activision Blizzard umbrella. This deal, finalized in 2016, was a strategic play to expand Activision Blizzard’s reach into the lucrative mobile gaming market. Let’s delve deeper into this acquisition and explore the implications for both companies and the gaming world.
The Acquisition: A Deep Dive
Why Did Activision Blizzard Buy King Digital?
In November 2015, Activision Blizzard announced its intent to acquire King Digital Entertainment for a staggering $5.9 billion in cash. This was not a small investment; it was a bold strategic move. At the time, King Digital was a powerhouse, generating approximately $2 billion in revenue and $641 million in operating income. The allure for Activision Blizzard was clear: to tap into King’s massive mobile audience and diversify its gaming portfolio.
The primary rationale behind the acquisition was to gain access to King’s enormous user base, especially in the mobile sector. While Activision Blizzard was already a titan in console and PC gaming, with titles like Call of Duty and World of Warcraft, they lacked a significant presence in mobile. King, with its immensely popular Candy Crush Saga and other titles, provided that missing link. This acquisition allowed Activision Blizzard to instantly establish itself as a major player in mobile gaming.
The Financial Details of the Deal
The $5.9 billion acquisition was a substantial investment, reflecting the value of King Digital’s user base and revenue streams. The deal was completed in early 2016, officially bringing Candy Crush and its developer under the Activision Blizzard banner. It is crucial to note that the deal was for King Digital Entertainment, not just Candy Crush. This included all of King’s other games, although Candy Crush remained their flagship title. The acquisition also ensured that Activision Blizzard gained King’s expertise in free-to-play mobile gaming, which is markedly different from console and PC gaming models.
The Impact of the Acquisition
A Diversified Gaming Portfolio for Activision Blizzard
The acquisition of King Digital significantly diversified Activision Blizzard’s portfolio. With the addition of Candy Crush, they were now operating across multiple platforms: console, PC, and mobile. This allowed them to reach a broader audience and reduce their reliance on traditional gaming markets. It also gave them access to new revenue streams, as mobile gaming had become a dominant force in the industry.
The Continued Success of Candy Crush
Even after the acquisition, Candy Crush Saga continued its reign as one of the top mobile games worldwide. In 2021, the game amassed $1.2 billion in revenue, securing its place as the seventh highest-grossing mobile title. Its enduring popularity highlights the savvy investment Activision Blizzard made. In fact, total revenue for Candy Crush has reached $20 billion since its 2012 launch, making it a remarkable success story in the gaming industry. Candy Crush is still hugely popular with a base of over 250 million users playing monthly.
The Ownership Landscape Post-Acquisition
Following the purchase of Activision Blizzard by Microsoft in 2023, the ownership of Candy Crush ultimately falls under Microsoft. This means that while Activision originally bought King Digital and thus Candy Crush, the ultimate ownership of all those assets, including King Digital, rests with Microsoft. This further expands Microsoft’s presence in the gaming industry and into the mobile sector, which it had previously not had significant holdings in.
Frequently Asked Questions (FAQs)
1. Is Candy Crush owned by Activision or Microsoft?
While Activision Blizzard initially acquired King Digital Entertainment, the creators of Candy Crush, Microsoft now owns all of Activision Blizzard and its subsidiaries, including King Digital. So, Candy Crush is ultimately owned by Microsoft.
2. How much did Activision pay for Candy Crush?
Activision Blizzard paid $5.9 billion in cash to acquire King Digital Entertainment. This was not specifically for just Candy Crush, but rather for the entire company and its game portfolio, of which Candy Crush was the flagship.
3. Who bought Candy Crush?
Initially, Activision Blizzard purchased King Digital Entertainment. Now, through the acquisition of Activision Blizzard, Microsoft ultimately owns Candy Crush.
4. Does Candy Crush still make money?
Yes, Candy Crush remains a highly profitable game. In 2021, it generated $1.2 billion in revenue, and its total revenue since 2012 has reached $20 billion. It continues to be one of the top-grossing mobile games worldwide.
5. How much money does Candy Crush make a day?
According to Activision Blizzard’s Q2 financial report, Candy Crush Saga generates a daily revenue of $633,000. This highlights its continued popularity and profitability.
6. Why did Microsoft buy Activision?
Microsoft’s acquisition of Activision Blizzard was driven by its ambition to expand its presence in gaming, particularly in the streaming and metaverse spaces. By acquiring Activision, Microsoft gained access to numerous major intellectual properties, including Call of Duty, Warcraft, and Candy Crush as well as studios and development teams.
7. Who is the CEO of Candy Crush?
The CEO of King Digital Entertainment, the company that created Candy Crush, is Riccardo Zacconi, an Italian businessman and video game developer.
8. Who owns Sugar Crush?
While the game is not actually called ‘Sugar Crush,’ you may be referring to the game Candy Crush. King Digital Entertainment created Candy Crush, and it is currently owned by Microsoft, following their acquisition of Activision Blizzard.
9. Can I sell my Candy Crush account?
While technically possible, selling a Candy Crush account typically violates the game’s terms of service or end-user license agreement (EULA). Many online games, including Candy Crush, prohibit the selling or trading of accounts.
10. Why does Candy Crush make so much money?
Candy Crush makes substantial revenue due to a massive number of free players, even if only a small percentage makes in-app purchases. There are also a small percentage of players, known as “whales,” who spend a disproportionate amount of money on the game, further driving revenue.
11. How rich is Candy Crush?
Candy Crush Saga has generated $20 billion in revenue since its debut in 2012, highlighting its massive financial success and influence in the gaming industry. It also has more than five billion downloads.
12. What other companies are owned by Activision?
Activision Blizzard’s portfolio includes iconic IPs like Call of Duty, StarCraft, Warcraft, Diablo, Overwatch, and Candy Crush, developed by teams at Activision, Blizzard Entertainment, and King. They also own independent studios like Infinity Ward, Raven Software, Sledgehammer Games, Toys for Bob, and Treyarch.
13. Is Candy Crush Chinese?
No, Candy Crush is not Chinese. It was created by King Digital Entertainment, a UK-based company. However, there is a Chinese version launched by Tencent Holdings Ltd in China.
14. How much does the average player spend on Candy Crush?
In 2018, Candy Crush players spent an average of $4.2 million a day. However, it’s important to note that this is an average, and many players spend nothing, while a few spend considerable amounts.
15. How many players have reached level 6000 in Candy Crush?
As of the available data, 695 players have earned the badge for reaching level 6000 in Candy Crush. This shows the level of dedication of the game’s core fans.
Conclusion
The acquisition of King Digital Entertainment by Activision Blizzard was a landmark event in the gaming industry, and now with Microsoft’s purchase of Activision Blizzard, Candy Crush is part of the Microsoft gaming empire. It showcased the growing importance of mobile gaming and provided Activision with a crucial entry point into that market. The success of Candy Crush continues to prove the value of that strategic move. This move remains a significant chapter in the ever-evolving story of video game ownership and industry consolidation.