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Can Candy Crush's parent company survive on the stock market?

Jacob Margolis

Well, Candy Crush isn't exactly on the stock market. It's King, the game's parent company, that began trading on the New York Stock Exchange today at $22.50. However, after only a couple of hours the stock had already dropped a couple of dollars. 

While it's way too early to tell if the company is in trouble, investors might be a bit bearish on mobile game companies after the Zynga went public back in 2011 and subsequently tanked.

There are optimists that say King's 408-million monthly active users and big profits are enough to keep it afloat. For example, the company generated $1.89 billion in revenue in 2013. 

However, as Privco pointed out, "Only 4 percent of King's monthly unique visitors are paying customers on a monthly basis," and that in Q4 of 2013 "Candy Crush represented 78 percent of total gross bookings for King..."  

They think that King could be relying too much on the success of Candy Crush. King is fishing for its next big hit though, with 665 employees working to put out game after game.

Tim Stevens, editor at large at CNET, says there's the possibility of a hit. "They've launched hundreds of games at this point and really they're just waiting to see what takes off," he said on Take Two. "They're really taking quantity over quantity right now."

Regardless of where they're headed, the IPO raised King around $500 million, and in the end, we'll have to wait and see if the king remains on the throne. 


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