Activision Blizzard Inc.’s plan to buy the Dublin-based maker of Candy Crush Saga for $5.9 billion not only gives it access to the fast-growing mobile gaming industry, it will help save taxes.
By using $3.6 billion of cash stored outside the U.S. to help finance the acquisition of King Digital Entertainment Plc, Activision will save about $1 billion in taxes it would have had to pay to repatriate the money, according to tax consultant Robert Willens. Investors, who initially sent Activision shares down as much as 6.3 percent, reversed course, driving up the price by 3.6 percent to $35.85 at Tuesday’s close in New York.
