King, makers of Candy Crush Saga, have their eyes on an IPO. Filed today, King is set to go public once the due diligence is done. Some feel the game studio is eyeing a multi-billion dollar valuation. Others feel that’s madness.

The game studio has proven very protective of their singular brand, issuing letters to protect both “Candy” and “Saga” from being in the titles of other games. The problem many see with King is that singular franchise. Putting all your eggs into one gaming basket reeks of Zynga, who did as much with Farmville. That studio has seen their share of massive layoffs and closed offices in the past few years.

King will likely have to prove they’ve got more in the pipeline than Candy Crush Saga to curry favor with potential investors. Save for a quick turnaround on stock, there is little reason to invest in a company that doesn’t have anything up their sleeve. The revenue stream might be great, but if there is no follow-up franchise, that candy coated river may dry up soon.

That revenue stream is a healthy one, though. King said their profit surged 7,000% last year, from $7.8 million in 2012 to $567.6 million. Revenue from 2013 was an impressive $1.9 billion. The filing also noted King (thanks in large part to Candy Crush) has 128 million active daily users. Though they have other dramatic titles, like Pet Rescue Saga and Farm Heroes Saga, Candy Crush remains king for king — and a point of concern for long-term investment.

VIA: The New York Times