'Candy Crush' creator King Digital Entertainment hopes for $500 million IPO

By Kyle Johnson,

King Digital Entertainment announced on Tuesday that it plans to go public on the New York Stock Exchange and is looking for an initial public offering of $500 million.

With the announcement, King noted the popularity of its game Candy Crush, reports The Guardian. The addictive, free-to-play game was played over 1 billion times a day during December.

Though the game is free, it has pay options, which has helped the company up its profits over 7,000 percent in just a year. King took in $1.88 billion in revenue, with $567.6 million being net profit. That's it up from 2012, where the company only earned $164.4 million in revenue, with a net profit of $7.8 million.

The Los Angeles Times notes that Candy Crush is King's only real money maker, which could lead to some hesitation on the market.

The game currently makes up 78 percent of the company's revenues, though it hopes to see similar success from other games, including Pet Rescue Saga, Papa Pear Saga and others.

People might think back to a similar IPO filing made by Zynga three years ago as it was high on the success of Farmville. Shares for Zynga have plummeted since then, being worth less than half of what they once were.

image courtesy of Amazon



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