Last night, Activision Blizzard announced it was buying King, the maker of Candy Crush, for $5.9 billion in cash, a 20% premium over King’s share price at close yesterday.
Why? As this chart from Statista shows, 79% of Activision’s revenue today comes from selling PC, online, and console games. King, on the other hand, makes 80% of its revenue from mobile games. The combined company will be much more diverse – and that’s important as mobile gaming grows at the expense of console gaming in particular.