If you are a fan of fantasy sports and daily fantasy leagues, you probably became one this year as advertising for these leagues became unprecedented after the beginning of the National Football League season. Advertising for mobile games has garnered just as much attention as more people are playing skill games on their phones and tablets.
Against this backdrop, the acquisition of King Digital Entertainment by Activision Blizzard is not surprising. The maker of transcendent console and computer games such as Guitar Hero and World of Warcraft will be entering the mobile gaming market with this acquisition. King Digital is best known its wildly popular Candy Crush game and its various iterations.
The purchase price will be $18 per share of King Digital stock, which will allow Activision to use a portion of the cash it has stockpiled abroad. According to a recent Forbes.com report, Activision has more than $3 billion on hand to fund the purchase. Also, King Digital has more than $900 users; and with an annual revenue of more than $2 billion, the combined company is expected to achieve exciting things in the mobile gaming market.
The story exemplifies the climate that many businesses are encountering as they contemplate strategic mergers and acquisitions. It also is indicative of the need for experienced legal counsel as these moves are contemplated and executed. The attorneys of Shulman Bastian Friedman & Bui LLP have the experience and expertise to guide companies through the process and to advise them on when deals should be avoided.