`Candy Crush’ Fuels King Digital’s $500M IPO

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March 26 (Bloomberg) -- Bloomberg’s Jonathan Ferro breaks down the $500 million IPO by “Candy Crush” maker King Digital and compares it to the dot com bubble of 2000 on Bloomberg Television’s “On The Move.”

On the market.

$7 billion and it is all down to one game.

We should probably call it the "candy crush" ipo.

I will tell you what this company is, terrifically popular.

Everybody plays it.

Three quarters comes from one game.

Three out of the 10 top apps come from this company.

1.4 billion daily game plays.

The problem, is it a fad?

Does current popularity translate to a business model that has any kind of longevity?

We saw what happened to zynga after their ipo.

You also have to think about this.

There are significantly lower barriers to entry to enter this market.

You can make a game for about $150,000. that is quite low.

That means another game could come in to the market and push them off their perch.

It is different in terms of valuations.

How do valuations compared to the dotcom era?

2.7 times projected sales.

That is not a terrifically-large valuation.

I do not think it has mattered.

Everybody would be talking about whether this was a bubble or not.

You look at the nostalgia for 2000. look at the comparison.

These were the u.s. companies that raise more than $100 million last year.

You can see the price to sales ratio is much lower last year.

The average on the first trading day, 65% in -- 65%. things have changed.

What i will say is that people are becoming a bit more conservative about valuations.

That is probably a good thing.

This company, we are going to talk about some companies this is bigger than.

It is remarkable.

A big difference between now and 2000's mobile devices.

How do you value a company like this?


Donovan pharoah with the latest.

Later today, we will be speaking

This text has been automatically generated. It may not be 100% accurate.


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