What does Clash of Clans maker’s $10-billion sale say about the future of gaming?

Congratluations, guys… you and the rest of the Clash of Clans crew now anchor a $ 10 billion mobile gaming powerhouse.

We’ve been hearing for years how mobile gaming has been growing at nearly inconceivable rates and will soon become the dominant force in the gaming business. Today’s $ 10-billion purchase of Clash of Clans maker Supercell by Chinese gaming giant Tencent drives home just how big that shift is—or at least how big the market thinks it is.

Tencent paid $ 8.57 billion for about 84 percent of the Finnish Supercell (which is owned by Japanese parent Softbank), valuing the mobile game studio at about $ 10.2 billion. That means a mobile game company with four titles is now worth more than twice as much as both Minecraft-maker Mojang (acquired by Microsoft in 2014 for $ 2.5 billion) and VR company Oculus (acquired by Facebook in 2014 for $ 2 billion) combined. Looking outside of gaming, Supercell sold for nearly twice as much as the combined purchase price of both YouTube and LucasFilm.

The only gaming acquisition that even comes close to the size of the Supercell deal is Activision’s purchase of Candy Crush Saga maker King, another mobile-focused studio. That move represented a $ 5.9-billion bet that franchises like Call of Duty, Overwatch, and Destiny aren’t going to be enough to sustain growth for the megapublisher going forward. But King is largely a one-trick pony at this point, relying heavily on the Candy Crush games for the vast majority of its players and revenue. Supercell’s success runs a bit deeper, with mega-hit Clash of Clans backed up by smaller-but-still-big hits like Clash Royale, Boom Beach, and Hay Day.

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Ars Technica

 
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