If you have been wondering about the fate of King Digital Entertainment stock, you are looking at one of the most notable high-profile acquisitions in the mobile gaming industry. King Digital Entertainment, the creative powerhouse behind the wildly addictive global phenomenon Candy Crush Saga, was once a publicly-traded company before disappearing from the stock exchanges entirely.
Table of contents
The Rise of King Digital Entertainment
Founded in 2003, King established itself as a pioneer in casual social and mobile games. The company experienced unprecedented growth after launching Candy Crush Saga in 2012. Capitalizing on this massive success, King Digital Entertainment launched its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) in March 2014 under the ticker symbol KING.
However, life as a public company proved volatile. While Candy Crush remained immensely popular, investors grew concerned about the company’s reliance on a single franchise. Subsequent game releases struggled to replicate the exact monetary and cultural impact of Candy Crush, leading to fluctuating stock prices that frequently dipped below their initial IPO price.
The Blockbuster Acquisition by Activision Blizzard
The definitive answer to what happened to the stock lies in a massive corporate buyout. On November 2, 2015, American video game giant Activision Blizzard Inc. (famous for franchises like Call of Duty and World of Warcraft) announced a definitive agreement to acquire King Digital Entertainment PLC.
Key details of the transaction included:
- The Purchase Price: Activision Blizzard agreed to acquire King for approximately $5.9 billion in an all-cash deal.
- Per-Share Value: Shareholders received $18.00 in cash for each King Digital share they owned.
- Strategic Vision: Activision sought to massively expand its footprint in the rapidly growing mobile gaming market, creating a diversified powerhouse spanning mobile, console, and PC platforms.
Regulatory Approvals and Final Closure
The multi-billion-dollar acquisition required navigating various regulatory hurdles across the globe. Throughout late 2015 and early 2016, the companies secured necessary clearances. Notably, the European Commission granted clearance under the EU Merger Regulation, removing a major regulatory roadblock. Additionally, approvals were sought through the Irish High Court, as King was legally an Irish-domiciled public limited company.
By the spring of 2016, all conditions were successfully satisfied, and the transaction was officially finalized.
Where is the Stock Now?
Because the acquisition was executed as a 100% cash buyout, King Digital Entertainment stock no longer trades publicly. The ticker symbol KING was permanently retired from the NYSE. Shareholders at the time received their payout of $18.00 per share, and King became a wholly-owned subsidiary operating under the Activision Blizzard umbrella.
Later on, Activision Blizzard itself became the subject of an even larger historic acquisition when Microsoft announced its intent to buy Activision Blizzard for nearly $69 billion—a deal that eventually closed after extensive global regulatory reviews.
In summary, King Digital Entertainment stock did not crash or go bankrupt; rather, it was successfully bought out, turning its public shares into cash and cementing its legacy as part of a larger gaming empire.
