Why Activision's Deal for King Digital Was a Home Run

Activision Blizzard (NASDAQ: ATVI) is one of the world's largest video game publishers, but historically the company has been almost exclusively focused on making games for the hardcore PC and console markets.

That is, until Activision acquired King Digital in 2016. King owned Candy Crush, the highest-grossing mobile game of all time in the United States, which gave Activision a foothold in the market for smartphone games. Nearly four years later, it's clear that Activision's acquisition was a home run for shareholders.

Activision agreed to pay $5.9 billion in cash for King Digital. This was the company's largest acquisition since its merger with Blizzard back in 2008 and ranks as one of the largest-ever acquisitions of a gaming company.

Source Fool.com