Recently, a Japanese company reportedly acquired a chunk share of Supercell ownership making the Japan-based Softbank company owner of about 73.2 percent share. This acquisition is the company’s move to be onboard with the success of mobile gaming.
DEAL BETWEEN SOFTBANK AND SUPERCELL
All that has been known is Softbank acquired shares were own by external investors and the remaining shares is owned by the Supercell’s management and employees. Furthermore, the current CEO of Supercell Ilkka Paananen will continue to be hold the post despite the major stock acquisition of Softbank. No one divulge the full terms of the deal.
At first, the Japan-based company initially acquired 50.5 percent equity stake in Finland-based Supercell for $1.5 billion. Softbank’s serious interests to enter in the mobile gaming industry is evident as it takes another big bite recently as the Clash of Clans becoming more and more popular.
CLASH OF CLANS
The game is all about bulding an empire while training troops to attack another empires this puts players in a virtual world where success of the empire is all dependable on the player playing the role of a commander. Released in 2012 and this games is available on iOS and Android platforms.
There are millions of people playing Clash of Clans every single day, this what makes the Supercell lined up to be one of the top game developers.
THE REASON BEHIND CLASH OF CLANS POPULARITY
According to the current CEO Mr. Paananen, Supercell spent some $440 million in marketing. This gives them enough advantage with other developers because of their marketing success. The company advertise the games tediously by spending money in advertising. The exposure in return gave the company the popularity it holds nowadays.
Pertaining to the revenue of Supercell the CEO Ilkka Paananen, said in an interview with the Finland-based Kauppalehti newspaper that the company generated 519 million euros ($569 million) in revenue in 2013 and 1.5 billion euros in 2014. Supercell’s operating profit — a measure of the difference between revenue and its earnings before interest, taxes, depreciation and amortization, hit 515 million euros in 2014.
It can’t be denied that other Supercell mobile games like Boom Beach and Hay Day have also contributed and generated income for the company but the primary reason of the company’s success financially is coming from the CoC – Clash of Clans.
Clearly, the financial success record of Supercell is what sparks Softbank to acquire more stake from the aforementioned Supercell as there is no sign that the popularity of CoC will be slowing anytime soon.