Candy Crush deal takes gaming to the next level

Yesterday saw the announcement that Activision Blizzard, the online gaming company, had made an offer of over USD 5bn for King Digital Entertainment, the creator of the addictive online game Candy Crush, amongst others.

This would be the largest deal ever recorded in the recently emerged sector of online gaming and apps, and would surpass by a long way the USD 3.1bn acquisition of Kakao Corporation by Daum Communications Corporation that completed in May 2014.

This new area of technology really didn't exist prior to the emergence of smartphones. Yes, there were basic games that could be played on a Blackberry, but the emergence of Apple and other smart phone manufacturers has seen deals in the online and mobile gaming area really begin to take off since 2008. 2007 saw announced deal values standing at USD 951m, compared with USD 15.7bn in 2014, and with this latest deal, 2015 levels already stand at USD 14.3bn with just under 8 weeks of the year remaining!

The logic of the deal is being questioned in some quarters as King Digital have not had the same level of success with their other mobile games as Candy Crush, however by acquiring King, Activision will get access to what is reported to be the biggest online audience after Facebook and YouTube. So in theory all Activision have to do is capture that audience's imagination with a new game that can continue to keep commuters, amongst others, tapping away on their smartphones!