Earlier this year, it was announced that the makers of Candy Crush were seeking to file an IPO. If you don’t know, an IPO is an initial public offering which is when a company begins to sell off shares (or “assets”) in the stock market. An IPO allows a private company to go public and is usually done when a company wants to raise money for expansion.
Earlier this year, the social media mogul Twitter went public and shares are being sold at $50 each. Many other popular websites and internet companies are looking to cash out their popularities by going public.
But King is now rethinking its IPO filing. And why? Because maybe Candy Crush is too popular.
What everyone loves discussing about Candy Crush is how popular it is and how popular it has been for so long. It’s unprecedented to see a game top the charts for as long as Candy Crush has. It is estimated King makes over $800,000 a day in revenue from Candy Crush alone.
The problem with going public in early 2014 is if Candy Crush’s popularity begins to fall, the value of the company does too. King is hedging its bets with this decision–while Papa Pear and Pet Rescue are popular, they are nowhere near Candy Crush. If Candy Crush begins to fall out of fashion (perhaps this is just an inevitability), the company will suffer not just from users leaving but also from share holders.
Check out the article on Forbes.com and tell us what you think–is Candy Crush here to stay?