Activision Blizzard Inc. and King Digital Entertainment have singed a definitive agreement where ABS Partners C.V., a wholly owned subsidiary of Activision Blizzard, will acquire all of the outstanding shares of King for $18.00 in cash per share, for a total equity value of $5.9 billion. The $18.00 per share purchase price implies a 20% premium over King’s October 30 closing price.
The deal bring together two of the top five highest-grossing mobile games in the U.S. (Candy Crush Saga and Candy Crush Soda Saga), the world’s most successful console game franchise (Call of Duty), the world’s most successful computing franchise (World of Warcraft), and other well known titles. Activision Blizzard expects that this content will enhance Activision Blizzard’s position as one of the world’s most successful interactive entertainment companies.
The boards of directors of Activision Blizzard and King unanimously approved the acquisition, which is being implemented by means of a scheme of arrangement under Irish law. The acquisition is subject to approval by King’s shareholders and the Irish High Court, clearances by the relevant antitrust authorities and other customary closing conditions, and is expected to be completed by the spring.
