For the company behind Candy Crush, developer King Digital don’t exactly seem to be crushing it in their public market debut on the New York Stock Exchange.
Shares in the popular developer — which grossed $1.88 billion last year — were valued at $22.50 on Tuesday. They then debuted at $20.50 on Wednesday, before quickly dipping to $19.06.
Many are suggesting that the lack of faith in King is related to Farmville developer Zynga, which had a strong IPO in late 2011, but then faltered.
The fear with King is that it will prove unable to repeat its breakout success with Candy Crush — something that neither Zynga or Angry Birds developer Rovio have been able to do with follow-ups to smash hits.
Ricardo Zacconi, King’s co-founder and CEO, remains optimistic, however — telling CNBC Wednesday morning that the company is “not just a one-hit wonder” and that it currently has three separate games in the Facebook Top 10.
- Source Associated Press