Candy Crushed

Candy Crush and all other King properties were bought by Activision today. Weird move if you ask me. 

Activision will pay $18 a share in cash, a 16 percent premium to King Digital’s closing price of $15.54 Monday in New York. That’s also 20 percent lower than King’s initial public offering price of $22.50 in March 2014. The stock fell after the IPO on concerns that the Dublin-based maker of Candy Crush may fail to diversify from its top-selling game and become a one-hit wonder.

The agreement adds a mobile publisher to the arsenal of the biggest U.S. video-game maker, positioning Activision to capitalize on growing smartphone-based play. Activision will use $3.6 billion of cash stored outside the U.S. to finance the deal, a move that will help save about $1 billion in taxes the company would have had to pay to repatriate the money, according to tax consultant Robert Willens.
— Christopher Palmeri, Bloomberg

I don't know what to make of this. It seems like a lot of money to be spending on a company that has not proven itself to be an entity that can thrive with diverse titles over years of business. Are you telling me that Activision believe's that King is worth more than Star Wars? My bet is that it's not, and while this gives Activision an in to a big money making market, I think they're making a move that's all about short term interest.

I could be wrong though. Sometimes short term interests are the only interests that matter.