King Digital, the maker of the at one point wildly popular Candy Crush Saga, is set to go public tomorrow - pricing tonight at around $8 billion. The company gets about 75% of its revenue off of the Candy Crush franchise, which was the number one game in the land up through January.
In its prospectus King Digital says that one of the main threats is its own explosive growth. It has hired 512 people over the last two years to try to replicate the success of Candy Crush Saga and come up with another winner; therein lies the rub.
The number one game in the land right now is 2048, a game that I taught the kids how to play and told not to speak to me unless they completed it. It’s that addictive, my friends. It’s the only game you’ll see people playing at work and on the bus while they wait for the NCAA games.
My point is this, the 19 year-old Italian kid who used his OCD to design 2048 and gave it away for free on the internet is really King Digital’s competition. There’s a reason Rovio, the maker of Angry Birds hasn’t gone public yet and that’s because they’re printing cash like a busted ATM or the weirdo that invented Bitcoin.
If a company is really good, really operating, really taking advantage of the $17 billion industry that is apps, they’re not going to go public. When companies like King Digital start going public it’s time to grab your wallet and form a betting pool as to who is going to finish 2048 first (the answer is me).
More from Breakout:
- Candy Crush