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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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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