Candy Crush developer King thinks it's worth $7.6 billion (and it probably is)7
King said today that it is looking for a market value of up to $7.6 billion with its IPO. The game developer wants to sell 22.2 million shares for between $21 and $24 when it goes public. If King hits this target, it would put the developer's valuation right in the middle between fellow "casual" game maker Zynga, which is currently valued at $5 billion after considerable drops in its stock price, and Electronic Arts, which is currently valued at about $9.2 billion.
That may seem like quite a large amount for a developer that makes what are essentially knock-off games, but it is important to keep in mind the enormous sums of money that King generates. In 2012, King recorded just $164.4 million in revenue, but that number skyrocketed to $1.88 billion in 2013. Aiming for a valuation equal to four times revenue is actually fairly reasonable, assuming the company can keep up those numbers, which is always tricky as Zynga has shown.