King is an up-and-comer in the social gaming market. The company has released dozens of hit games over the course of the past year, and it has been revealed that King is considering going public. This week, it was announced that King is working with a number of banks and financial institutions to help plan for its IPO. It will take a great deal of work, but King could launch its initial public offering by the end of the year.
This will be the second time that a social gaming developer has decided to launch an IPO. Zynga was the first company to attempt this difficult step, and it did not set a positive example for other social games companies. However, representatives from King have stated that they have learned from Zynga’s mistakes and the company will make a successful debut on the stock market.
“King is a lot more diversified than Zynga and is pretty strong on mobile, which is growing fast,” says Michael Pachter, an analyst for Wedbush, who also notes that King is much more profitable than Zynga. “It has lower revenues but a lot lower expenses.” King’s diverse portfolio is what will secure the company’s success on the stock market. Investors want to work with a product that is likely to experience long-term success.
With plenty of successful games under its belt, King can guarantee that its products will thrive for a long time to come. Unfortunately for Zynga, the company only offered a handful of titles which eventually became obsolete. The mobile market has also contributed to King’s success.
Whereas Zynga did not focus much on expanding into the mobile gaming world, King is very interested in offering mobile version of its online social games. Mobile gaming is taking off in a big way, which will further guarantee King’s success on the stock market.
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