‘Candy Crush’ Maker Nears IPO that Could Be Valued at more than $7 Billion

A detail from the online game "Candy Crush Saga" is shown on a computer screen, Monday, March 24, 2014 in New York. King Digital, the company behind the popular, addictive mobile is expected to begin trading on the New York Stock Exchange on March 26. The Dublin, Ireland-based company could be valued as high as $7.6 billion if its initial public offering prices at $24 per share, the upper end of its expected range. (AP Photo/Mark Lennihan)

A detail from the online game “Candy Crush Saga” is shown on a computer screen, Monday, March 24, 2014 in New York. King Digital, the company behind the popular, addictive mobile is expected to begin trading on the New York Stock Exchange on March 26. The Dublin, Ireland-based company could be valued as high as $7.6 billion if its initial public offering prices at $24 per share, the upper end of its expected range. (AP Photo/Mark Lennihan)

King Digital, the company behind the wildly mobile game “Candy Crush Saga,” will make its debut on the New York Stock Exchange this week. The company’s valuation could reach $7.6 billion if its initial public offering prices at $24 per share, the upper end of its expected range. That’s nearly twice as much as its closest rival Zynga Inc., the creator of “FarmVille.”

Unlike Zynga, however, King is profitable and has less than a third of Zynga’s employee base.

The company is offering 15.5 million shares. Existing shareholders are offering another 6.7 million. King expects proceeds of $326 million from the IPO.┬áKing, based in Dublin, Ireland, generated revenue of $1.88 billion last year. That’s more than 10 times its 2012 revenue of $164.4 million. Zynga’s 2013 revenue was $873.3 million.

Still, some analysts wonder whether King will suffer the same fate as Zynga, which was also riding a wave of popularity when it went public in 2011, thanks to “FarmVille.”┬áKing has already seen a sequential revenue decline between its third and fourth quarters.

This report compiled with information from the Associated Press.