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King IPO stumbles out of the gate

Candy Crush Saga maker's stock down 15.6% after first day of trading

King Digital Entertainment has gone public, and the early results are not pointing toward a joyous coronation day for the Candy Crush Saga company. King set its IPO price at $22.50, but minutes into the trading day, it was already trading down more than 9 percent to $20.44.

In filing for the IPO with the Securities and Exchange Commission earlier this month, King said it would set its share price between $21 and $24, with the upper-most end of that range putting the company's total valuation in the neighborhood of $7.6 billion.

In the run up to King's IPO, there was concern among investors that it could wind up being a repeat of when Zynga went public in 2011. The FarmVille publisher had expected a valuation of about $20 billion, but closed its first day of trading at $7 billion. But where Zynga was dinged for its reliance on a single platform in Facebook, King's skeptics point to its dependence on the overwhelmingly successful Candy Crush Saga, sparking concerns the company would be a one-hit wonder.

[UPDATE] The rest of the day didn't go any better for King. The company's share price finished its first day of trading down 15.56 percent to $19, with a total of 40.66 million shares changing hands.

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Latest comments (6)

Nate Ballantyne QA Manager, Aardman Animations2 years ago
I'm sure this news will leave a sour taste in Toby Rowlands mouth though, he sold his shares for c$3.1m, today his stake would have been worth close to $1bn
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Christopher Bowen Editor in Chief, Gaming Bus2 years ago
Considering the whole intention of this IPO is for people to cash out, I doubt that anyone's really crying about it, to be fair.
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Steve Wetz Reviewer/Assistant Editor, Gamer's Glance2 years ago
"King IPO stumbles out of the gate..."

SURPRISING NO ONE. Seriously, after the Facebook and Zynga IPOs, who is bullish on these stocks, especially in the short term? Howie Hubler?"
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Greg Wilcox Creator, Destroy All Fanboys! 2 years ago
Soooo... I guess the next game will be Candy Cash Saga? Or has that title been "stolen" already by smarter and faster headline writers than I already? Probably...
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Bonnie Patterson Narrative Designer, Writer 2 years ago
I would imagine it would take some rather more original IP to sell well - anyone who wanted to invest in matching games and farming games probably bought Zynga stock already.
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Jordi Rovira i Bonet Lead Engineer, Anticto2 years ago
Stock Crash Saga
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