Will China’s Gamers Play Candy Crush Saga, and Boost King Digital Stock in the Process?

Candy Crush Saga is the most popular game in King's emerging empire. Credit: King Digital Entertainment.

A strategy to allow tens of millions of Chinese people to play Candy Crush Saga could pay off for holders of King Digital Entertainment (NYSE: KING  ) stock, Fool contributor Tim Beyers says in the following video.

Specifically, King has partnered with tech and entertainment conglomerate Tencent Holdings (NASDAQOTH: TCEHY  ) to create a localized version of the company's signature game. No timing or financial details were released. The stock nevertheless rallied more than 3% on the news.

Tim says that's understandable, especially when you consider the size and scope of Tencent's network. According to the latest figures, the company's QQ Game Platform catered to 8.5 million simultaneous users at its peak in the fourth quarter. Overall, active online user accounts reached a peak of 180 million in Q4. That's a potentially huge installed base.

There's also precedent for success in the Asia-Pacific region. Thanks to a series of well-placed TV ads, Candy Crush Saga became the No. 1 downloaded iPhone game in Japan in December. Tencent could embrace a similar strategy, and draw in millions to its QQ Game Platform with King's help -- a win-win that could benefit investors in both companies, Tim says.

Now it's your turn to weigh in. Do you expect a rush among Chinese gamers to play Candy Crush Saga? Please watch the video to get the full story, and then leave a comment to let us know your take, including whether you would buy, sell, or short King Digital Entertainment stock at current prices.

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  • Report this Comment On April 24, 2014, at 6:03 PM, BC4Johnson wrote:

    I already bought in at 19 and will hold at this time. Based on what I am seeing/reading; available cash, commercial advertisements, overseas partnering, I truly believe King's game plan is not to be a one trick pony. With available cash, I would hope they are deep into development of their next takeoff product and should be looking at their development pool to ensure they have the talent they need to succeed.

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