Activision Goes Mobile With Deal To Buy King Digital Entertainment

   (FROM THE WALL STREET JOURNAL 11/4/15) 
   By Sarah E. Needleman

Activision Blizzard Inc.'s planned purchase of King Digital Entertainment PLC transforms it into a leader in mobile apps, a cutthroat and fast-growing segment of the videogame industry.

The question is whether Activision can help King churn out mobile games at the same pace and with the same success as it does for its own franchise PC and consoles games, such as "Call of Duty," which launches yet another sequel Friday.

The proposed $5.9 billion deal would add King's games -- among the top-grossing apps in the Apple Inc. and Google Inc. ecosystems -- to Activision's stable of hit franchises, which helped the company report third-quarter earnings that beat Wall Street's forecasts.

Investors on Tuesday sent Activision shares up 3.6% to $35.82.

Activision has just a handful of titles in the mobile market, including "Hearthstone: Heroes of Warcraft," a free game for iOS and Android devices. It credited the game with helping it boost adjusted digital revenue to $697 million, a record.

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(END) Dow Jones Newswires

November 04, 2015 02:47 ET (07:47 GMT)

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