The King IPO price will be released sometime today (Tuesday), and will likely be at the top of the price range. That means the Candy Crush-maker's IPO could be valued as high as $7.6 billion - about 2.9 times more than King's projected sales this year, according to a revenue estimate by Sterne Agee & Leach Inc.
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King IPO: King Digital Entertainment PLC said today (Wednesday) it expects a market value of as much as $7.6 billion in its initial public offering.
On Feb. 18, the maker of several hit social Internet games, including tour de force "Candy Crush Saga," filed for a U.S. initial public offering (IPO). The stock will be listed on the New York Stock Exchange under the symbol "KING," with J.P. Morgan Chase & Co. (NYSE: JPM), Credit Suisse Group AG (NYSE: CS), and Bank of America Merrill Lynch (NYSE: BAC) serving as lead underwriters.
Do you play Candy Crush Saga? Some 93 million people do - every day. And the money they pay for "powerups" has powered the profits of King Digital Entertainment. But with the gaming company now going public, we need to take a closer look at the numbers.
There is a lot of excitement surrounding King's announcement, but also a fair share of wariness.
That's because King's Cinderella story isn't unique.
Remember the dramatic tale of Zynga Inc. (Nasdaq: ZNGA)?
The online gaming giant made the massively popular Facebook-based FarmVille game and acquired several makers of other hit games.
In 2011, it priced its IPO at $10 a share, making it the biggest Internet IPO since Google's (Nasdaq: GOOG) back in 2004. By early 2012, Zynga was worth $11.5 billion.
Indeed, Zynga looked to be going nowhere but up.