Seeking Alpha

Zynga, Glu Mobile higher ahead of King's IPO

  • Candy Crush Saga developer King Digital is expected to price its IPO tonight, and begin trading tomorrow. Peers Zynga (ZNGA +4.7%) and Glu Mobile (GLUU +2.3%) are rallying ahead of the event, after having sold off yesterday.
  • King is aiming for a fairly conservative valuation amid concerns about Candy Crush dependence and flatlining growth (revenue fell 3% Q/Q in Q4). Advisory firm IPO Boutique states King's offering is oversubscribed.
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Comments (10)
  • db313706
    , contributor
    Comments (216) | Send Message
     
    I was always skeptical about these mobile gaming companies, especially after Swrve recently released analytics about user trends like 0.15% of all users account for more than 50% of in-app purchases. This screams unsustainability to me.

     

    Good luck if you're involved in any of this.
    25 Mar 2014, 11:29 AM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (388) | Send Message
     
    I'll admit I'm addicted to Candy Crush, and I play it quite a bit, but I've never spent a single penny on it nor would I.

     

    The prevailing theory on the value of King seems to be that if they did it once, they can do it again - certainly a possibility but I'm not willing to bet on it.
    25 Mar 2014, 11:39 AM Reply Like
  • youngdub774
    , contributor
    Comments (93) | Send Message
     
    Mobile gaming is a one hit wonder industry. We'll see if they can build brands like EA or Activision
    25 Mar 2014, 12:01 PM Reply Like
  • StepUp
    , contributor
    Comments (503) | Send Message
     
    We already know they can. Ever heard of Angry Birds? Candy Crush?
    25 Mar 2014, 12:30 PM Reply Like
  • youngdub774
    , contributor
    Comments (93) | Send Message
     
    Yes that would be the one hit, EA and Activison have multiple franchises
    25 Mar 2014, 12:45 PM Reply Like
  • StepUp
    , contributor
    Comments (503) | Send Message
     
    Desktop simply has years of lead-time. Mobile has proven they can build brands. Many hits to come.
    25 Mar 2014, 02:26 PM Reply Like
  • user418
    , contributor
    Comments (241) | Send Message
     
    GLUU is going to be the winner, perfect buyout for YAHOO, low capitalization..
    With two new games just released. PIRATES, AND ROBO COPS.
    25 Mar 2014, 01:17 PM Reply Like
  • Mike Ao
    , contributor
    Comments (117) | Send Message
     
    I agree. Gluu is the future winner for investors. I really like the way they try to monetize their enterprise (SaaS).
    25 Mar 2014, 02:31 PM Reply Like
  • pagreen1966
    , contributor
    Comments (647) | Send Message
     
    Totally agree. (GLUU) is one of the best stocks to be in this year. Just loaded up some more when it pulled back yesterday. Now have 12,000 shares!
    25 Mar 2014, 07:53 PM Reply Like
  • Clark Zhao
    , contributor
    Comments (28) | Send Message
     
    Game-In app purchase has already become normal in China. People spend hundreds of dollars to boost their status in online games. Somehow it's not happening here in North America. Or maybe we don't see it?
    25 Mar 2014, 02:30 PM Reply Like
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