Candy Crush Maker King Files for IPO

UK-based gaming company King, makers of the Candy Crush Saga, has secretly filed for an IPO in the US.

According to the Telegraph, the Facebook-turned-mobile gaming company will float on the Nasdaq and is expected to be valued at more than $5bn. 

King’s IPO can go under the radar because of a provision in the JOBS Act (Jumpstart Our Business Startups) that enables companies with fewer than $1bn in revenue to begin the process of going public in secret. The company has not yet confirmed its actions.

Back in April, King’s international sales director Michael Bayston announced they were dropping the ‘.com’ from their name, reflecting the company’s new-found mobile success. Candy Crush, the company’s flagship mobile game and already the largest game on Facebook, had 50m daily active users across all of its platforms. 52 per cent of those were using mobile, he said. The game’s freemium model sees players who can’t wait to get more lives able to buy them.

The company was founded in the UK in 2003 and has 150 online games in its portfolio. Commentators are concerned that King could go the same way as Zynga, another Facebook and mobile gaming company. Zynga raised $1bn in its IPO in 2011 but despite huge numbers of mobile players, the company recently cut one-fifth of its workforce. It saw a net loss in 2012 of $209m.