Casual giant King seeks to diversify their portfolio buy picking up Seattle’s mid-core strategy game developer Z2. The studio behind titles like Battle Nations and Metal Storm: Online.
In an earnings call yesterday, Swedish (and now London-based) casual game developer and publisher, King, revealed that they have bought the American mid-core casual developer Z2 for $45 million in cash, and up to $105 million of additional cash depending on the performance of their games in the future.
In the earnings call, King explained their decision to buy the developer as a way of diversifying the genres of games they offer, most likely in an attempt to spread the risk and to get away from their current dependency on Free2Play casual games, and Candy Crush Saga in particular, to drive the business.
Through this acquisition, the Company will incorporate a proven team focused on contributing to our diversification into new genres
According to Geekwire, CEO Riccardo Zacconi added in the call that Z2 was a “great cultural fit,” and that they look “forward to welcoming them to King and joining forces to push this opportunity together.”
Apart from the acquisition, the earnings call also reported on the latest earnings figures from the casual game powerhouse. These figures show that while the studio manages to make a respectable profit of 141 million dollars in Q4 2014, it’s still 12 % lower than what they managed in Q4 2013.
Despite the decrease in profits, the stock markets reacted positively to the earnings call, sending up King’s stock value about 4 %.