World of Warcraft and Call of Duty maker Activision Blizzard is buying King Digital Entertainment, the creator of Candy Crush Saga for $5.9 billion.
Activision Blizzard said the acquisition would make it a global leader in interactive entertainment across mobile, console and PC platforms.
It added the combined company would have more than half a billion monthly active users in 196 countries.
The Call of Duty series is one of the world’s best selling console games, while Candy Crush Saga is among the most popular games on mobile devices.
Video game publishers are switching from the physical sale of games to digital growth as consumers move from consoles to playing on smartphones and tablets.
In a statement, Activision Blizzard CEO Bobby Kotick said: “With a combined global network of more than half a billion monthly active users, our potential to reach audiences around the world on the device of their choosing enables us to deliver great games to even bigger audiences than ever before.”
Bobby Kotick told the Reuters news agency that the company wanted to broaden its reach and appeal to a larger demographic.
He said that 60% of King Digital Entertainment’s players were female, and that no games console or hardware, besides a smartphone, was needed to access its games.
King Digital Entertainment has focused on a business model that allows users to play a game for free, but pay extra for additional features.
The international success of Candy Crush Saga has given it exposure to high growth markets in Asia, such as China, Japan and South Korea.
Activision’s games are played on more expensive video game consoles or computers, with games costing between $30-$60.
King Digital Entertainment, which has its main offices in London and Stockholm, will continue to operate as an independent unit led by chief executive Riccardo Zacconi.
Riccardo Zacconi said: “Since 2003, we have built one of the largest player networks on mobile and Facebook, with 474 million monthly active users in the third quarter 2015.
“We believe that the acquisition will position us very well for the next phase of our company’s evolution.”
Activision Blizzard is offering $18 in cash for each King share, and the deal is expected to boost Activision’s earnings by about 30%.
King Digital Entertainment floated on the New York Stock Exchange in March 2014 with the original share price being offered at $22.50.
It closed in New York at $15.54.
Candy Crush Saga, which was first launched on Facebook and smartphones in 2012, caught the public imagination and still makes up about a third of the company’s revenue.
Even though the company has produced more than 200 games, including the popular Bubble Witch and Farm Heroes, it has yet to repeat the success it found with Candy Crush Saga.
King Digital Entertainment helped boost its number of daily active users with the launch of Candy Crush Soda Saga in late 2014, but there has been a decline in player spending on their number one game.
The deal is expected to be completed by Q2 of 2016, assuming approval from shareholders and regulators.
Call of Duty maker has come under fire after a controversial web campaign to launch the newest title from its popular video game franchise, Call of Game: Black Ops III, described a fictional “terror attack” in Singapore.
Set in Singapore during the year 2065, Call of Duty: Black Ops III begins with a mission where players must investigate the “mysterious disappearance” of a CIA station.
Ahead of its worldwide release on November 6, games maker Activision launched a series of tweets, setting up the opening scene for a fictional attack in Singapore.
While the tweets aimed to tease fans and also introduced new characters to the game, many social media users were unimpressed at the way things were playing out on Twitter, saying the scenario was in bad taste.
The popular Call of Duty franchise has attracted its fair share of controversy since its release in 2003.
Earlier editions of the game focused on World War Two events while newer titles have been set during more recent times.
Cuban authorities expressed unhappiness over a mission in one of the games, where players could attempt to overthrow and assassinate former leader Fidel Castro.
Another Call of Duty expansion saw players raiding a news agency in Doha, widely speculated to be the offices of Arabic TV network al-Jazeera.
How Call of Duty unfolded “Singapore terror attack” in September 29 tweets:
10:03: Fictional news network “Current Events Aggregate” sent out a breaking news tweet about “unconfirmed reports” of “an explosion” in Singapore’s marina, exciting some gamers on Twitter while confusing others.
10:14: “Emergency teams” began to converge on the area.
10:21: Another update followed, confirming that the explosion took place at the “Singapore Research Laboratories” facility.
10:52: Chaos ensued, causing major traffic jams around the city centre. This led to a “state of emergency” and the Singapore authorities declaring martial law.
11:44: Military drones and riot police descended upon Chinatown to control the crowds.
12:05: The “Singapore army” released a series of statements on the ground, establishing a “30-mile quarantine zone” and calling for citizens to remain in their homes.
“There have been no claims of responsibility from any terror organization,” it added in a tweet.
12:35: Fictional army commander James Chung, also declared that martial law would “remain in place” until the incident was “firmly understood”.
14:37: The series of live tweets ended with an official message: “This was a glimpse into the future fiction of #BlackOps3”
Panama ex-military ruler Manuel Noriega failed in his attempt to sue Activision, the publisher of the Call of Duty video games.
Manuel Noriega had tried to sue Activision after a character based on him featured in the title Black Ops II.
The former dictator of Panama had sought damages.
The judge at Los Angeles Superior Court ruled that the inclusion of the character was protected under free speech laws.
Manuel Noriega had tried to sue Activision after a character based on him featured in the title Black Ops II
“This was an absurd lawsuit from the very beginning and we’re gratified that in the end, a notorious criminal didn’t win,” said Rudy Giuliani, the former mayor of New York, who had defended Activision in the case.
“This is not just a win for the makers of Call of Duty, but is a victory for works of art across the entertainment and publishing industries throughout the world.”
Manuel Noriega is currently serving a jail sentence in Panama for crimes committed during his time in power, including the murder of critics.
In the video game, the character based on Manuel Noriega initially helps the CIA capture a Nicaraguan terrorist, but later turns on the Americans and is hunted himself in fictional scenes.
In reality, Manuel Noriega did work as a CIA informant before the agency broke ties with him. After the US became concerned about his violent rule, President George Bush ordered the invasion of Panama in 1989, which resulted in his capture.
Call of Duty games have featured other real-life characters including Fidel Castro, ex-CIA director David Petraeus and President John F. Kennedy, among others.
Activision had warned that had the legal action been permitted to proceed, it could have encouraged other political figures to object to the use of their appearance in films, television programs and books in addition to video games.
“Today’s ruling is a victory for… global audiences who enjoy historical fiction across all works of art,” said Bobby Kotick, chief executive of Activision’s parent company, Activision Blizzard.
Former dictator of Panama Manuel Noriega is suing Call of Duty‘s video games publisher after a character based on him featured in Activision’s 2012 title Black Ops II.
The ex-military ruler is seeking lost profits and damages.
Manuel Noriega, 80, is currently serving a jail sentence in Panama for crimes committed during his time in power, including the murder of critics.
One lawyer said this was the latest in a growing trend of such lawsuits.
“In the US, individuals have what’s called the right to publicity, which gives them control over how their person is depicted in commerce including video games,” explained Jas Purewal, an interactive entertainment lawyer.
Manuel Noriega is suing Call of Duty’s publisher after a character based on him featured in Black Ops II
“There’s also been a very well-known action by a whole series of college athletes against Electronic Arts, and the American band No Doubt took action against Activision over this issue among other cases.
“It all focuses upon the American legal ability for an individual to be only depicted with their permission, which in practice means payment of a fee.
“But Noriega isn’t a US citizen or even a resident. This means that his legal claim becomes questionable, because it’s unclear on what legal basis he can actually bring a case against Activision.”
In Activision’s video game, Manuel Noriega initially helps the CIA capture a Nicaraguan terrorist, but later turns on the Americans and is hunted himself.
In reality, Manuel Noriega did work as a CIA informant before the agency broke ties with him. After the US became concerned about his violent rule, President George Bush ordered the invasion of Panama in 1989, which resulted in his capture.
A 13-page document filed in Manuel Noriega’s name claims that he is portrayed as a “kidnapper, murderer and enemy of the state” responsible for “numerous fictional crimes” in Black Ops II, according to Courthouse News Service.
It alleges his inclusion heightened the game’s sense of realism, helping boost its sales.
Black Ops II – which was scripted by David Goyer, screenwriter of the recent Batman movies – was 2012’s biggest-selling title in the US, UK and elsewhere.
Details of Destiny, Bungie’s first game since quitting the best-selling Halo franchise, have been leaked online.
The gaming website IGN has obtained marketing materials revealing it is called Destiny, and aims to create a universe “as deep” as the Star Wars franchise,
The project had been one of publisher Activision’s most closely guarded secrets.
It has a 10-year exclusive arrangement with the development studio.
Activision has previously told investors that the game would be “genre-defining” and prove to be one of its two “largest growth opportunities” over coming years, alongside the Call of Duty series.
Following IGN’s exclusive, Bungie reproduced one of the images on its own site and confirmed the leak’s authenticity.
According to IGN the game will be set 700 years in the future, and feature battles with aliens to protect the “last city on Earth” after the collapse of mankind’s efforts to colonize the Solar System.
A screenshot suggests the first title in the expected series will run on the PlayStation 3 and Xbox 360. Bungie’s most recent releases had only run on Xbox systems.
Details of Destiny, Bungie’s first game since quitting the best-selling Halo franchise, have been leaked online
A decision to build another sci-fi franchise will see Destiny compete with the developer’s original series.
Microsoft has said it has plans for at least another two Halo games. Its most recent sequel, Halo 4, was created by its own subsidiary 343 Industries. The series as a whole has generated more than $3.4 billion in revenues to date.
“You can never have sure bets and the risks involved with creating new IP [intellectual property] are always relatively high, but to have a studio like Bungie involved reduces the risk considerably for Activision due to its incredible track record,” said Pier Harding-Rolls, head of games research at IHS Screen Digest.
But he added that the publisher was unlikely to be happy about the way news of its game had become available.
“I don’t think any company that wants to manage and control the promotion of their material would want to see it leaked through the back door,” he said.
“But a lot of leaks do go on in the industry.
“I’m sure we’ll see a lot more of it at E3 [games conference] in June where games like this can be shown in a satisfying way.”
Activision has released the first details of Black Ops 2, the latest installment in its best-selling Call of Duty series.
Black Ops 2 is set in 2025 and centres on “the enemy” taking control of the US army’s unmanned weapon systems.
The title is being developed by the firm’s Treyarch studio and is due for release on 13 November.
That will pitch it against the return of Microsoft’s Halo series. The science fiction first-person shooter launches a new trilogy a week earlier.
Activision said the last title in the Call of Duty series, Modern Warfare 3, broke sales record grossing $775 million on its first five days on sale.
Black Ops 2 is set in 2025 and centres on "the enemy" taking control of the US army's unmanned weapon systems
However, news site Gamasutra recently reported that analysts at Macquarie Equities had suggested that since its debut the title had underperformed its predecessor.
According to their numbers, by March the number of copies of MW3 sold was 4.2% behind where the first Black Ops title had been at the same time a year earlier.
Postings on site forums suggested that some players might have begun tiring of the format.
Video game website IGN said that a decision to develop a topical plot centred on cyber-terrorism in conjunction with Batman Begins scriptwriter David Goyer and the Brookings Institution think tank was designed to bolster interest.
“The decision to move Black Ops forward in time is a response to market saturation – there is an abundance of military shooters around – and a way to reinvigorate the genre,” said games writer Daniel Krupa.
“But it isn’t a strikingly original move. Ubisoft’s long-running Ghost Recon series is also making a leap forward in time this year. Halo is a military shooter set in the distant future.
“Ultimately, the real future of the first-person shooter won’t lie in the trenches of conflicts past or present, but in other settings with stronger narratives.”
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