Trademark Troll Candy Crush Saga Fails IPO

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Back in January, I wrote Why you should delete Candy Crush Saga. This game is made by a company called King Digital Entertainment, who has launched an IPO today on the New York Stock Exchange. King priced its shares at $22.50, and, at closing time on the first day, the shares have dropped more than 15%.

With most IPOs, there’s an initial euphoria, with large investors hoping to cash in on short-term gains. But with King’s reputation as an evil trademark troll, it looks like investors aren’t going out of their way to buy the shares. Heck, even Jim Cramer said, “It’s a Stephen King horror story.”

The shares might recover, and might go on to be winners, but it’s obvious that King does not have a good reputation, and only has one best-selling game, which only makes money through dubious in-app purchases. I hope it tanks.




7 replies
  1. Chucky says:

    “Trademark Troll Candy Crush Saga Fails IPO”

    Methinks this is a highly misleading headline.

    Investors who bought the IPO failed. The owners of Candy Crush made off with $500 million by selling off 7% of their company, which is almost exactly how much they made in earnings in their past highwater year.

    Making half a billion dollars by selling out waaaay high ain’t failing. It’s generally called finding a bigger sucker. It’s the opposite of failing.

    Reply
  2. Kirk McElhearn says:

    They’re making half a billion, but, the failure of the IPO means that, in the future, if they sell more shares, they’ll be making much less than they would of, because they’ll have to lower the price. The overall company valuation depends now on the share price.

    Reply
    • Chucky says:

      Sure. But the smart opinion for a while now has been that KING is a one-hit wonder, and that they have no place to go but down. In other words, the overall company valuation would be lower in a year, no matter what. So, they’re just smartly cashing out at the right moment into an overly frothy IPO market, and selling to a bunch of suckers who are going to lose money. Check out how Zynga has done since their smartly timed IPO…

      Reply

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