King.com, the Irish game company behind Candy Crush Saga, had an incredible year last year and saw $1.88 billion in revenue. Of this revenue, King.com brought in $568 million in profit, which is an insane amount of money when you consider the fact that the vast majority of it was from a single game, Candy Crush Saga.
To capitalize off of its recent success, King.com is looking to go public with the New York Stock Exchange under the KING ticker. This seems like the logical choice for a fast growing, successful company like King.com, but I wonder if the decision is a bit premature.
Sure King.com has had an incredible year, but investors will soon realize that King.com success is solely based off of the popularity of one game. Candy Crush Saga is popular now, but will it still be big in a month? Reports show revenue was down 20 million in Q4 compared to Q3 which seems to indicate a drop in popularity. Not only do I question the longevity of Candy Crush Saga’s popularity, but after a string of bad press, I wonder if people haven’t already started turning on King.com itself.
Recently the makers of Candy Crush Saga filed for trademarks on both the words “Candy” and “Saga.” This in and of itself is upsetting, but a few days later word came out that King.com may have stolen the idea from a game called Candy Swipe which was made two years prior to Candy Crush Saga. If these allegations prove to be true, I imagine King.com will not only see a series of lawsuits, but also a steady decrease in profits.
If you have the money, and are looking to invest, I recommend looking elsewhere. I wouldn’t recommend buying any shares of King.com anytime soon.
For more on King’s inappropriate trademarking:
Makers of Candy Crush Saga suing other games that use the word ‘saga’
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