`Candy Crush Saga' Game Maker Files for IPO

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Feb. 18 (Bloomberg) -- King Digital Entertainment, the maker of Candy Crush and other digital games files for an IPO. Bloomberg's Cliff Edwards reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

And some pretty good numbers but not some great numbers.

What is your take away?

These numbers were pretty much what we reported about six months ago and it shows they are reliant on one game for the majority of the revenue, about 87%. what we need to find out is if they can parlay candy crushed into other titles to make a lot of money.

The next two titles fall off by a massive amount in terms of the amount of revenue.

The way they make money is that users within the game by digital goods and that's where the revenue comes from.

Do they have the same kind of whale that zynga had, big spenders?

They do, four percent other people are converting to actually paying for virtual goods.

That was about three percent that zynga had at their peak.

They are about the same.

The number of people who are actually paying for these digital goods decreased monthly and revenue growth decreased?

Yes, that's one of the real things that investors will be looking at when they start the roadshow.

One thing we have been hearing is that they were a little concerned about that.

Some of their early-stage investors want to cash out now.

Why are they filing an ipo now?

As you see in their filing, some of their investors really want to cash out.

If you like they have been in a long time and they want to strike while the iron is hot and while they have this big revenue gain and see what other investors think.

I want to bring in the cofounder of seriously in the executive vice president joining usvia skype from l.a. and jon erlichman.

What do you think of the king numbers and the reliance on candy crushed saga.

We are seeing a huge shift to mobile devices.

I look at mobile now and think it is early days.

When a company like king can't get over 125 million daily users, that is bigger than the super bowl every day.

It shows the potential for the platform to reach a very big engaged audience.

Can they leverage the network effect to create more titles that help them build that business over the longer term?

What stands out to you, jon, having covered gaming companies?

Could what happened to zynga f wherearmville declined, can that happen to candy crush as well?

Absolutely, the biggest mistake that zynga ultimately made as it went public was thinking it had truly revolutionized the gaming business.

Especially in towns like l.a., you're only as big as your last hit.

It is true there is this new business model tied to things like damning and relying heavily on the wales to pay for the game and the revenue and profitability of this business is impressive.

What happens if people decide there is another big hit?

If you look at the risks that are highlighted in the king respective, -- perspective, they point to electronic arts and zynga.

There are bigger companies like if amazon or apple or facebook or anybody decided they wanted to make a more serious push for the king customers and how that might affect their business.

Let's talk about their other games -- pat rescue saga, if these games have not developed a cult following that candy crush already has, will they ever?

These games have been out for quite some time and they have been trying to cross pollinate the customers.

It really has not resonated yet.

With mobile, it takes a little bit of time and some -- the problem that people have with these games is that they are so addictive you want to play that one name until you master it.

With candy crush, they keep adding more complexities and you play that game longer than you would most games.

Andrew, when it comes to innovation in gaming, can king make these current other games that are not hits yet into hits?

Do they have to start from scratch?

I would say that there is not necessarily a formula.

I think that serious amounts of shares of entertainment is going to companies like king and we are starting to see the early signs of some very big companies emerge on mobile weather that the king or the likes ofs superell tying up with super bank or natural motion who sold their business to zynga.

People are starting to vote with their wallets and that will have a big affect on the entertainment and media climate of large over the next few years.

Andrew, there are a lot of people playing games but are they playing the games of established game makers?

Sloppy birds took the game world by storm.

What does that mean for people like you who are in this as a business?

How do you create longevity among your users?

I think it's an amazing thing that i'm mobile, you can reach such a big audience.

With virality and integration of social features, it is possible to build something very big.

Our business model is all about building games that are really an experience like apixar movie but you engage in the world we are building through a pixar-li ke experience.

What's exciting is big audience, big reach, people are prepared to spend and are starting to vote with their wallets.

When you cut content in everybody's pocket, you got an opportunity to build something pretty amazing.

King is reasonably early in the beginning of their journey.

What about the ability to turn some of these games into bigger franchises?

I know you tried to do that at rovio with angry birds.

How easy is it to make a game bigger than just a game?

It's hard.

Building a brand is really hard work.

You need to marry the creativity, the technical know- how, and the data.

If you look at companies like disney who really have built these ancillary revenue streams for their entertainment properties through the pillars of their entertainment business being television and film, i believe what you are starting to see emerge over the next few years is very big opportunity getting built on mobile platforms, games potentially being a key part of the entertainment ip and the ability for companies to really build ancillary businesses whether it be toys or whatever it may be.

There are lots of opportunities to build ancillary revenue streams around the ip that emerges from the mobile platform.

Andrew, formerly ofrovio,

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


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