King
-7%
est. 2Y upside i
Rank
#3316
Sector
Mobile Gaming
Est. Liquidity
~5Y
Data Quality
Data: MediumKing, a profitable subsidiary of Microsoft Gaming with approximately $2.5B in revenue and a strong competitive moat, presents a fairly valued equity opportunity.
Last updated: March 10, 2026
King successfully diversifies its game portfolio with new hit titles like 'Minecraft Blast' and expands into emerging markets, leveraging Microsoft's resources. This drives revenue to over $4.3B and justifies a hypothetical valuation of $13B, reflecting strong growth and market leadership.
King maintains its dominant position in casual puzzle games with the Candy Crush franchise, achieving modest growth with new titles. Revenue reaches approximately $3B, leading to a hypothetical valuation of $9B, in line with steady performance in a competitive market.
Increased competition and a decline in Candy Crush engagement, coupled with internal morale issues and unsuccessful new game launches, lead to revenue stagnation or decline. This results in a hypothetical valuation drop to $4.5B, significantly impacting equity value.
Preference Stack Risk
moderateInvestors hold $500M in liquidation preferences. In a hypothetical exit at or below $7.5B, common stock holders would receive value after these preferences are satisfied.
Dilution Risk
lowAs a subsidiary of Microsoft, external funding rounds are not anticipated, minimizing dilution risk from new equity issuance.
Secondary Liquidity
noneThere is no active secondary market for King's equity as it is a private subsidiary of Microsoft.
Questions to Ask at the Interview
Strategic questions based on King's data — designed to show you've done your homework.
- 1
“Given the intense competition in the mobile gaming sector and King's reliance on the Candy Crush franchise, how is the company strategically planning to diversify its game portfolio and ensure long-term growth, especially with new initiatives like 'Minecraft Blast'?”
- 2
“As a subsidiary of Microsoft Gaming, how does King's strategic roadmap and financial performance integrate with Microsoft's broader gaming vision, and what are the implications for employee equity and potential liquidity events in the next 2-5 years?”
- 3
“The recent news mentions layoffs and the potential replacement of staff by AI tools. How is King addressing employee morale, fostering innovation, and retaining key talent amidst these changes to maintain its competitive edge?”
Community
Valuation Sentiment
Our model estimates -7% upside. What do you think?
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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.