King Delays IPO Launch Until Next Year
Not since the IPO launch of Zynga has a social gaming company enjoyed so much hype as that of UK based King. As we reported earlier the maker of the smash hit game Candy Crush Saga were reportedly looking into the process of making a confidential IPO offering.
With over 500 million downloads of their global hit Candy Crush Saga, one cannot but see the similarities between them and Zynga at their height of their success of FarmVille just before their much talked about IPO launch.
It is here that King would like the similarities to end as we all know Zynga launched largely on what many consider a one hit wonder and shortly after their IPO launch lost over two thirds of their value and are still struggling to return to their glory days.
It is for this reason that King has decided to delay their potential five billion dollar IPO launch on the NASDAQ stock exchange until next year. This is considered a wise move by many and a brave move by others. King are wary of following Zynga’s downfall and want to prove that they are more than just a one hit wonder gaming company. Those close to the company are quick to point out that they have other gaming hits like that of Pet Rescue and Farm Heroes that have already passed Candy Crush Saga.
While King are certainly taking a gamble in not cashing in while being the flavor of the month, they are showing potential investors that they intend to match the hype to actual results.