Activision Blizzard Purchase Of Candy Crush Developer Makes Waves In Los Angeles
Record-Breaking Activision Blizzard Purchase Of Candy Crush Developer
The tech community seems to be abuzz with the recent news that US Gaming Company, Activision Blizzard will soon be acquiring King Digital Entertainment, the makers of the hit mobile app game Candy Crush for $5.9 billion. This deal will make Activision Blizzard, which is headquartered in Santa Monica, a major player in the global computer gaming industry.
Tech Companies Setting Up Shop On The Westside
The trend of many tech companies residing in West Los Angeles doesn’t seem to be going away, especially those that are well-backed by venture capital firms. Major companies like Snapchat, Hulu, Buzzfeed, and AOL are all headquartered in west Los Angeles’ Silicon Beach area which consists mainly of neighborhoods such as Venice Beach, Santa Monica, Playa Vista, Playa Del Rey, Marina Del Rey, and Culver City.
Video game companies specifically seem to be making an impact on the area with other big players such as Riot Games and Naughty Dog also headquartering in Santa Monica. In addition, co-founders and CEO’s of these tech companies seem to be making an impact on the real estate industry here in Los Angeles. Back in January of this year Minecraft creator Markus “Notch” Persson purchased a lavish $70 million, 23,000 sq. ft. Beverly Hills mansion.
How Is The Gaming Industry Impacting Real Estate Values?
According to an article from Forbes.com published in January of this year, video game jobs have grown at a rate of 9% every year since 2009. Currently, California has the highest amount of video game employees countrywide. This is a benefit to the state especially because video game companies often pay their employees quite well. Forbes.com states that on average video game industry employees are paid about $103,071 per year.
With a large California presence of a fast growing, high-paying video game jobs combined with hundreds of other tech companies mainly based out of the Westside of Los Angeles, it’s no surprise that commercial and residential real estate values have risen consistently over the last few years. The amount of available office space has been reduced since the growth of Silicon Beach creating more demand for commercial buildings and also more demand for homes.
Residential real estate prices in Southern California have risen quite a lot, especially within the last year. According to the California Association of Realtors, in September 2015 the median home price in Los Angeles county rose by 9.6% from September 2014. That means in as little as one year the average price of a home in the county shot up to almost 10% more, creating huge gains for home owners in the county. With Activision Blizzard being headquartered in Silicon Beach and their recent purchase of King Digital Entertainment, neither the west Los Angeles tech industry nor the real estate market seem to be slowing down anytime soon.