But, for one-hit wonders, the smartest strategy might be to just enjoy it while it lasts. We expect companies to constantly be in search of the next big thing. If King stayed private, it could milk its cash cow and build games without having to worry overmuch about hatching a new cultural juggernaut. Such expectations are, frankly, silly in crazily competitive, hit-driven industries, and trying to meet them is a recipe for frustration. As a public company, King will have to show shareholders consistent results and ever-growing profits. Surowiecki writes: It’s easy to see why King’s founders want to go public: money. King will probably never again make the kind of money ($568m) it made last year, and yet it issued options in January at a crazy $9.4bn valuation. The point of an IPO is to raise permanent capital for a company which intends to exist in perpetuity, while King will realistically last only as long as the Candy Crush fad. Jim Surowiecki is absolutely right about the IPO of King Digital Entertainment, the makers of Candy Crush Saga.
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