Activision CEO Bobby Kotick on the King deal: 'We have an audience of 500 million'

The respected and sometimes reviled CEO of Activision Blizzard is typically bullish about the takeover deal everyone in the industry is talking about

Three years ago, a group of senior Activision executives led by CEO Bobby Kotick met with Stephane Kurgan and Riccardo Zacconi, the heads of mobile gaming company King. It was, says Kotick, a social engagement, two powerhouses of the global games industry shooting the breeze in a fancy restaurant. During an investor call this week, however, Zacconi talked about the "mutual fear and respect" at the table. Executives don't meet like this for fun. They were sizing each other up.

On Monday, Activision announced that it would be acquiring King, creator of the massively successful Candy Crush Saga game - as well as other more modest smartphone hits - for $5.9bn. Predictably, the revelation sent shockwaves through the industry: it's a hefty sum - more than Disney paid for legacy entertainment companies Marvel and LucasFilm. What was Activision thinking?