Clash of Clans Latest Update News: Softbank Mulls on Selling Its Supercell Stocks at $5-billion Market Valuation

By Jenn Loro - 18 May '16 09:55AM

Japanese telecoms giant, Softbank, is reportedly planning to sell 73% of its stake in the Finnish mobile game developer Supercell, putting the company's total value at $5 billion.

According to a published article by Bloomberg, Softbank is looking at the possibility of selling its stake in the Finish mobile game maker at $5-billion corporate valuation. Back in 2013, the Japanese telecoms firm paid up to $1.5 billion to acquire 51% of the company. It then decided to invest another $1.2 billion to increase its stake to 73%. The remaining 27% stake has been divided accordingly between Supercell's management and workers.

The report also revealed that Softbank is currently negotiating its sale of the stake with prospective strategic buyers from China although this rumor is yet to be confirmed. Its current $5-billion valuation is a slight decrease from its predicted market valuation of $5.5 billion last year.

For a company with a little over 180 employees estimated with such a great market value isn't exactly surprising. Four its games had over 100 million active users, Venture Beat reported. The accomplishment is more like a remarkable feat in highly competitive mobile games industry worth around $34 billion. This means that the Finland-based developer accounts 15% of the total market share.

Supercell's major hits include games like Hay Day, Clash of Clans, Boom Beach, and, more recently, the Clash Royale. Currently, Clash Royale nabs the number four spot on the highest-grossing games on iOS devices in the United States while Clash of Clans is at number five.

Meanwhile, the top-earning executives at Supercell are setting a good of example in terms of fulfilling their tax obligations to the government. As reported by Eurogamer, the deliberate decision by the company's top brass to pay the full amount of taxes due since becoming millionaires three years ago has increased the Finnish government's tax revenues from capital gains tax by a fifth.