Activision Blizzard agreed to buy a mobile games maker King Digital Entertainment for $5.9 bn. The boards of both companies have approved the transaction, and the deal is expected to be completed by spring 2016 after the approval by King's shareholders. The purchase of King Digital, a "Candy Crush Saga" creator, bodes well for Activision in the long term, in my opinion. The addition of King's mobile games will position Activision as a global leader in interactive entertainment across mobile, console and PC platforms. Activision, which owns popular game franchises such as "World of Warcraft," "Call of Duty," and "Diablo," said the deal gives the combined company more than 500 mn monthly active users across the world and would increase Activision's estimated 2016 adjusted revenues and earnings by about 30%. Mobile gaming is already the industry’s biggest category with projected revenues of $36 bn in 2015, according to the companies. That’s projected to grow by more than 50% by 2019. Activision also reported third-quarter earnings of 17 cents per share, compared with a loss of 3 cents a year earlier. Excluding items, it earned 21 cents per share. Revenue rose 31% to $990 million. Analysts had expected earnings of 15 cents a share, on revenue of $950.4 mn. Activision's stock, I think, looks nice for medium term investment.