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takyon [soylentnews.org] writes:

MarketWatch [marketwatch.com]/WSJ [wsj.com] reports:

Activision Blizzard Inc. late Monday said it is acquiring King Digital Entertainment PLC for $3.4 billion in cash plus debt, combining two giants in the videogame industry.

The deal gives Activision a powerhouse in console videogames with hit franchises such as "Call of Duty" and "World of Warcraft," a beachhead in the fast-growing business of mobile games.

King shot to fame in 2012 with its hit "Candy Crush Saga," helping to position casual and inexpensive smartphone apps as a viable alternative to pricier games played on TVs and personal computers. While many of King's other mobile games haven't reached the same level of success, "Candy Crush" and its sequel are still among the top-grossing apps on Apple Inc.'s App Store.

Activision can't pay for the full value of Candy Crush out of pocket:

Activision said it is paying $18 a share, a 20% premium to King's 4 p.m. ET price of $14.96 on the New York Stock Exchange on Oct. 30. On Monday, King shares rose 3.9% to $15.54. Activision is using $3.4 billion in cash, plus a $2.3 billion loan, to pay for the deal.

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