Combined Company to be Crowned a Leader in Interactive Entertainment

A New Global Leader In Mobile Gaming, the Largest and Fastest-Growing Segment Of Interactive Entertainment

Creates One of the Largest Entertainment Networks with Over Half a Billion Monthly Active Users in 196 Countries

Combined Portfolio to Encompass 10 of the World's Most Iconic Interactive Entertainment Franchises

Activision Blizzard Remains the Most Profitable, Successful Standalone Interactive Entertainment Company in the World

Combining TTM Non-GAAP Revenues of $4.7B for Activision Blizzard and TTM Adjusted Revenues of $2.1B for King and Combining TTM Adjusted EBITDA of $1.6B for Activision Blizzard and $0.9B for King

Accretive to Activision Blizzard's Estimated 2016 Non-GAAP Revenues and EPS by Approximately 30%

King Shareholders to Receive $18 per Share Representing a 20% Premium Over King's 30 October 2015 Closing Price, 23% Premium Over King's One Month Volume Weighted Average Price Per Share and 27% Premium Over King's Three Month Volume Weighted Average Price Per Share

King Will Continue to be Led as an Independent Operating Unit by Chief Executive Officer Riccardo Zacconi , Chief Creative Officer Sebastian Knutsson , and Chief Operating Officer Stephane Kurgan

RNS Number: 009278

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN, INTO OR FROM ANY RESTRICTED JURISDICTION

FOR IMMEDIATE RELEASE

2 November 2015

SANTA MONICA, Calif. and LONDON --(BUSINESS WIRE)-- Activision Blizzard, Inc. (" Activision Blizzard") (Nasdaq:ATVI) and King Digital Entertainment plc (" King") ( NYSE : KING) today announced the signing of a definitive agreement under which ABS Partners C.V. ("ABS Partners"), a wholly owned subsidiary of Activision Blizzard , will acquire all of the outstanding shares of King for $18.00 in cash per share, for a total equity value of $5.9 billion (the "Acquisition"). The $18.00 per share purchase price implies a 20% premium over King's 30 October 2015 closing price, a 26% premium over King's 30 October 2015 enterprise value (which excludes net cash), a 23% premium over King's one month volume weighted average price per share and a 27% premium over King's three month volume weighted average price per share. The boards of directors of both Activision Blizzard and King unanimously approved the Acquisition, which is being implemented by means of a scheme of arrangement under Irish law. The Acquisition is subject to approval by King's shareholders and the Irish High Court , clearances by the relevant antitrust authorities and other customary closing conditions, and it is currently expected that the Acquisition will be completed by Spring 2016.

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Activision Blizzard believes that the addition of King's highly-complementary business will position Activision Blizzard as a global leader in interactive entertainment across mobile, console and PC platforms, and positions the company for future growth. The combined company will have a world-class interactive entertainment portfolio of top-performing franchises, including two of the top five highest-grossing mobile games in the U.S. (Candy Crush Saga®, Candy Crush Soda Saga™), the world's most successful console game franchise (Call of Duty®), and the world's most successful personal computing franchise (World of Warcraft®), as well as such well known franchises as Blizzard Entertainment's Hearthstone®: Heroes of Warcraft™, StarCraft®, and Diablo® and Activision Publishing's Guitar Hero®, Skylanders® and Destiny, along with over 1,000 game titles in its library. Activision Blizzard expects that this leading content, together with expertise across subscription, upfront purchase, free-to-play and micro-transaction business models will enhance Activision Blizzard's position as one of the world's most successful interactive entertainment companies. During the last twelve months ended 30 September 2015 , Activision Blizzard had non-GAAP revenues of $4.7 billion and King had adjusted revenues of $2.1 billion . During the same period Activision Blizzard had adjusted EBITDA of $1.6B and King had adjusted EBITDA of $0.9 billion . During the last twelve months ended 30 September 2015 , Activision Blizzard had GAAP revenues of $4.9 billion and King had IFRS revenues of $2.1 billion . During the same period, Activision Blizzard had GAAP net income of $1.1 billion , and King had IFRS profit of $0.6 billion .

Bobby Kotick , Chief Executive Officer of Activision Blizzard , said, "The combined revenues and profits solidify our position as the largest, most profitable standalone company in interactive entertainment. With a combined global network of more than half a billion monthly active users, our potential to reach audiences around the world on the device of their choosing enables us to deliver great games to even bigger audiences than ever before."

Kotick, added: "Riccardo, Sebastian, and Stephane are some of the best minds in the business, and we have long-admired King for consistently creating incredibly fun, deeply engaging free-to-play games that capture the imaginations of players across ages and demographics. Activision Blizzard will provide King with experience, support and investment to continue to build on their tremendous legacy and reach new potential. We share an unwavering commitment to attracting and developing the best talent in the business, and we are excited about what we will be able to accomplish together."

Riccardo Zacconi , Chief Executive Officer of King, said, "We are excited to be entering into this Acquisition with Activision Blizzard . Since 2003, we have built one of the largest player networks on mobile and Facebook, with 474 million monthly active users in the third quarter 2015, and our talented team has created some of the most successful mobile game franchises. We believe that the Acquisition will position us very well for the next phase of our company's evolution and will bring clear benefits to our players and employees. We will combine our expertise in mobile and free-to-play with Activision Blizzard's world-class brands and proven track record of building and sustaining the most successful franchises, to bring the best games in the world to millions of players worldwide. We are very much looking forward to working with Activision Blizzard . We have two teams that, together, will have an amazing footprint, innovative technology, and leadership across platforms, and unique, established IPs to delight one of the largest networks of players in the world."

Gerhard Florin , Chairman of King's board of directors, said, "The Acquisition provides a return to King shareholders through the premium that it provides to King's share price and the immediate liquidity that the Acquisition will provide to all of our shareholders upon completion. The King board of directors believes that Activision Blizzard's cash offer is attractive given the balance of future opportunities, risks and competitive forces confronting King's business."

Activision Blizzard Strategic Rationale

Activision Blizzard believes that the following points will accelerate Activision Blizzard's strategic growth plan:

One of the Largest Global Entertainment Networks. This Acquisition will create one of the largest global entertainment networks with over half a billion combined monthly active users in 196 countries. This global audience will reach across casual and core gamers, female and male players, and developed and emerging markets throughout the world. Direct relationships with this large and diverse audience will extend Activision Blizzard's reach, creating opportunities to cross-promote content and engage new players with Activision Blizzard's franchises.

This Acquisition will create one of the largest global entertainment networks with over half a billion combined monthly active users in 196 countries. This global audience will reach across casual and core gamers, female and male players, and developed and emerging markets throughout the world. Direct relationships with this large and diverse audience will extend Activision Blizzard's reach, creating opportunities to cross-promote content and engage new players with Activision Blizzard's franchises. A New Global Leader in Mobile Gaming. Through this Acquisition, Activision Blizzard will become a global leader in mobile gaming—the largest and fastest-growing area of interactive entertainment, that is expected to generate over $36 billion of revenue by the end of 2015 and grow cumulatively by over 50% from 2015 to 2019.

Through this Acquisition, will become a global leader in mobile gaming—the largest and fastest-growing area of interactive entertainment, that is expected to generate over of revenue by the end of 2015 and grow cumulatively by over 50% from 2015 to 2019. Diverse Franchise Portfolio with Leadership Across Key Platforms and Genres. The combined company will have a portfolio encompassing 10 of the world's most iconic interactive entertainment franchises with leading titles including two of the top five highest-grossing mobile games in the U.S. ( Candy Crush Saga ® , Candy Crush Soda Saga ™), the world's most successful console game franchise ( Call of Duty® ), and the world's most successful personal computing franchise ( World of Warcraft® ), among others. This world-class collection of games spans genres and platforms, drives deep, year-round engagement, and is well-positioned for continued growth.

The combined company will have a portfolio encompassing 10 of the world's most iconic interactive entertainment franchises with leading titles including two of the top five highest-grossing mobile games in the U.S. ( ™), the world's most successful console game franchise ( ), and the world's most successful personal computing franchise ( ), among others. This world-class collection of games spans genres and platforms, drives deep, year-round engagement, and is well-positioned for continued growth. Potential Cross-Network Growth Opportunities . Combining one of the largest mobile gaming communities with Activision Blizzard's leading franchises creates potential opportunities to grow and cross-promote content to a diverse audience, while providing players more opportunities to engage with its content.

. Combining one of the largest mobile gaming communities with Activision Blizzard's leading franchises creates potential opportunities to grow and cross-promote content to a diverse audience, while providing players more opportunities to engage with its content. Enhanced Capabilities Across Business Models. The combined company's capabilities across subscription, upfront purchase, free-to-play and micro-transaction business models will accelerate diversification of Activision Blizzard's revenue streams. This expertise across diverse monetization methods will lead to new opportunities to delight players and provide Activision Blizzard with key capabilities to meet evolving player preferences and reach new untapped audiences. The combined company will benefit from King's leading mobile capabilities that can be applied across the portfolio from micro-transactions, game analytics and mobile marketing to increase digital revenues.

The combined company's capabilities across subscription, upfront purchase, free-to-play and micro-transaction business models will accelerate diversification of Activision Blizzard's revenue streams. This expertise across diverse monetization methods will lead to new opportunities to delight players and provide with key capabilities to meet evolving player preferences and reach new untapped audiences. The combined company will benefit from King's leading mobile capabilities that can be applied across the portfolio from micro-transactions, game analytics and mobile marketing to increase digital revenues. The Most Profitable, Successful Standalone Interactive Entertainment Company in the World . During the last twelve months Activision Blizzard had non-GAAP revenues of $4.7 billion and King had adjusted revenues of $2.1 billion , and for the same period, adjusted EBITDA of $1.6 billion and $0.9 billion , respectively. The combined company will have further diversified and recurring revenues, cash flow generation, and long-term growth opportunities to propel future value creation for shareholders. Activision Blizzard believes the Acquisition will be accretive to 2016 estimated non-GAAP revenues and earnings per share by approximately 30% and significantly accretive to 2016 estimated free cash flow per share. Activision Blizzard expects the combined company to maintain a disciplined capital allocation policy and strong balance sheet.

. During the last twelve months had non-GAAP revenues of and King had adjusted revenues of , and for the same period, adjusted EBITDA of and , respectively. The combined company will have further diversified and recurring revenues, cash flow generation, and long-term growth opportunities to propel future value creation for shareholders. believes the Acquisition will be accretive to 2016 estimated non-GAAP revenues and earnings per share by approximately 30% and significantly accretive to 2016 estimated free cash flow per share. expects the combined company to maintain a disciplined capital allocation policy and strong balance sheet. Experienced Management Team. King will continue to be led by Chief Executive Officer Riccardo Zacconi , Chief Creative Officer Sebastian Knutsson , and Chief Operating Officer Stephane Kurgan , all of whom have strong expertise and proven track records in mobile gaming and have entered into long-term employment contracts. It is Activision Blizzard's intention that King will operate as an independent operating unit, with enhanced resources to support its industry-leading franchises. Activision Blizzard has a strong integration track record, and implementing the Acquisition as structured will minimize disruption and integration risk while maintaining the spirit of creative independence. The combination unites Activision Blizzard's and King's highly-complementary cultures, with aligned commitment to innovation, deep respect for the creative process, franchise focus, and emphasis on talent development.

Terms of the Acquisition

Under the terms of the Acquisition, which has been unanimously approved by the boards of directors of both companies, King's shareholders will receive $18.00 in cash per share comprising a total equity value of $5.9 billion and an enterprise value of $5.0 billion . The purchase price represents a 20% premium over King's closing price on 30 October 2015 , a 23% premium over King's one month volume weighted average price per share, and a 27% premium over King's three month volume weighted average price per share and implies a multiple of 6.4x King's estimated 2015 adjusted EBITDA.

in cash per share comprising a total equity value of and an enterprise value of . The purchase price represents a 20% premium over King's closing price on , a 23% premium over King's one month volume weighted average price per share, and a 27% premium over King's three month volume weighted average price per share and implies a multiple of 6.4x King's estimated 2015 adjusted EBITDA. The cash consideration payable by Activision Blizzard under the terms of the Acquisition will be funded from approximately US$3.6 billion of offshore cash on the balance sheet of the Activision Blizzard Group and by an incremental term loan committed by Bank of America Merrill Lynch and Goldman Sachs Bank USA , as incremental lenders, under Activision Blizzard's existing credit agreement in the amount of US$2.3 billion .

under the terms of the Acquisition will be funded from approximately of offshore cash on the balance sheet of the and by an incremental term loan committed by and Goldman Sachs Bank , as incremental lenders, under Activision Blizzard's existing credit agreement in the amount of . The King board of directors, who have been so advised by J.P. Morgan as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the King Directors, J.P. Morgan has taken into account the commercial assessments of the King Directors.

Accordingly, the King Directors unanimously recommended that King's shareholders vote in favour of the resolutions relating to the Acquisition at the relevant shareholder and scheme meetings.

It is intended that the Acquisition will be implemented by means of a scheme of arrangement under Chapter 1 of Part 9 of the Irish Companies Act 2014 (the "Scheme"). It is intended that the scheme document, (the "Scheme Document") containing the full terms and conditions of the Acquisition (including notices of the shareholder and scheme meetings), will be issued to King's shareholders, and, for information only, to holders of King's options and share awards, within 28 days of this Announcement, unless otherwise agreed with the Irish Takeover Panel . The Scheme Document will be made available by Activision Blizzard at activisionblizzard.acquisitionoffer.com and by King at http://investor.king.com/acquisition .

. The Scheme Document will be made available by at and by King at . The Acquisition will be put to King's shareholders at both a scheme meeting and a shareholder meeting. In order to become effective, the Scheme must be approved by a majority in number of the King's shareholders voting at the scheme meeting, either in person or by proxy, representing at least 75% in value of the King shares voted in each relevant share class. In addition, a special resolution implementing the Scheme and approving the related reduction of share capital must be approved by the King shareholders representing at least 75% of votes cast at the shareholder meeting.

The Acquisition, by means of a Scheme, is conditional, among other things, on the satisfaction or waiver of the conditions set out in Appendix I. The Scheme will also require the sanction of the Irish High Court . Subject to the satisfaction, or where relevant waiver, of all relevant conditions and the sanction of the Irish High Court , it is currently expected that the Scheme will become effective and the Acquisition will be completed by Spring 2016. An expected timetable of principal events will be included in the Scheme Document.

. Subject to the satisfaction, or where relevant waiver, of all relevant conditions and the sanction of the , it is currently expected that the Scheme will become effective and the Acquisition will be completed by Spring 2016. An expected timetable of principal events will be included in the Scheme Document. If the Scheme becomes effective, it will be binding on all King shareholders, irrespective of whether or not they attended and/or voted at the court or shareholder meetings (and if they attended and voted, whether or not they voted in favour).

Activision Blizzard and ABS Partners have received irrevocable undertakings from Messrs. Riccardo Zacconi , Stephane Kurgan , Sebastian Knutsson , being members of the King Board, that they will vote in favour of the matters and resolutions to be considered at the court and shareholder meetings in their capacity as shareholders (or, in the event that the Acquisition is implemented by way of a takeover offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the offer or procure acceptance of the offer) in respect of their entire beneficial holdings of King shares amounting to, in aggregate, 49,408,045 King shares, representing approximately 16% of the issued share capital of King on 30 October 2015 (being the last practicable date prior to the publication of this Announcement).

and have received irrevocable undertakings from Messrs. , , , being members of the King Board, that they will vote in favour of the matters and resolutions to be considered at the court and shareholder meetings in their capacity as shareholders (or, in the event that the Acquisition is implemented by way of a takeover offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the offer or procure acceptance of the offer) in respect of their entire beneficial holdings of King shares amounting to, in aggregate, 49,408,045 King shares, representing approximately 16% of the issued share capital of King on (being the last practicable date prior to the publication of this Announcement). In addition, Activision Blizzard and ABS Partners have received irrevocable undertakings from certain other King Shareholders, namely Bellaria Holding S.à r.l. and Mr. Thomas Hartwig , King's Chief Technology Officer, that they will vote in favour of the matters and resolutions to be considered at the court and shareholder meetings (or, in the event that the Acquisition is implemented by way of a takeover offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the offer or procure acceptance of the offer) in respect of their entire beneficial holdings of King shares amounting to, in aggregate, 147,107,666 King shares, representing approximately 47% of the issued share capital of King on 30 October 2015 (being the last practicable date prior to the publication of this Announcement).

and have received irrevocable undertakings from certain other King Shareholders, namely Bellaria Holding S.à r.l. and Mr. , King's Chief Technology Officer, that they will vote in favour of the matters and resolutions to be considered at the court and shareholder meetings (or, in the event that the Acquisition is implemented by way of a takeover offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the offer or procure acceptance of the offer) in respect of their entire beneficial holdings of King shares amounting to, in aggregate, 147,107,666 King shares, representing approximately 47% of the issued share capital of King on (being the last practicable date prior to the publication of this Announcement). In addition, Activision Blizzard and ABS Partners have received irrevocable undertakings from Messrs. Robert Miller , Marcus Jacobs , Tjodolf Sommestad and Nicholas Pointon and Ms. Frances Williams and Jill Kyne , being holders of linked shares, that in their capacity as holders of linked shares they will vote in favour of the matters and resolutions to be considered at the relevant class meetings relating to approval of the Scheme (or, in the event that the Acquisition is implemented by way of a takeover offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the offer or procure acceptance of the offer) in respect of their entire beneficial holdings of linked shares (as applicable) amounting to, in aggregate, 190,790 linked shares which, together with the commitments from Messrs. Zacconi and Kurgan referred to above (which amount to 2,077,080 linked shares, in aggregate), represents approximately 92% of the issued linked share capital on 30 October 2015 (being the last practicable date prior to the publication of this Announcement).

This summary should be read in conjunction with, and is subject to, the full text of the attached Announcement (including its appendices). The Acquisition is subject to the conditions set out in Appendix I to this Announcement and the further terms to be set out in the Scheme Document. The sources and bases of information contained in this Announcement are set out in Appendix II and Appendix V. Additional information is provided in Appendix III. Certain definitions and expressions used in this Announcement are set out in Appendix IV.

Conference Call, Webcast, Investor Presentation and Copy of Announcement

Activision Blizzard and King will host a conference call at 8:00 a.m. ET / New York time tomorrow, 3 November 2015 , to review the Acquisition and host a question and answer session. To access the conference call, interested parties may dial 888-596-2572 (domestic callers) or 913-312-0653 (international callers). The Conference ID Number is 9960349. Participants can also listen to a live webcast of the call through the Investor Relations page of Activision Blizzard's website at investor.activision.com. During the conference call and webcast, management will review a presentation summarizing the Acquisition, which can be accessed at investor.activision.com or at activisionblizzard.acquisitionoffer.com. A webcast replay will be available for the duration of the offer period at activisionblizzard.acquisitionoffer.com. Please call five minutes in advance to ensure that you are connected. Questions and answers will be taken only from participants on the conference call. For the webcast, please allow 15 minutes to register, download and install any necessary software.

Simultaneous with this Announcement, Activision Blizzard issued its third quarter 2015 results in a separate release. Activision Blizzard plans to address questions regarding its quarterly financial results during a separate portion of the conference call scheduled at 8:00 a.m. ET / New York time tomorrow, 3 November 2015 . Activision Blizzard previously planned to issue its earnings following the close of the market tomorrow. The previously scheduled call following the markets close tomorrow has been cancelled.

King will announce third quarter 2015 results and hold its conference call for analysts and investors on 4 November 2015 as regularly scheduled.

A copy of the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by Activision Blizzard will be made available by Activision Blizzard free of charge, subject to certain restrictions relating to persons in restricted jurisdictions, on activisionblizzard.acquisitionoffer.com by no later than 12 noon ET / New York time on 3 November 2015 . King will also make the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by King available on its website free of charge, subject to certain restrictions relating to persons in restricted jurisdictions, on http://investor.king.com/acquisition by no later than 12 noon ET / New York time on 3 November 2015 .

Contact Information Media Contacts Activision Blizzard Mary Osako Activision Blizzard , SVP, Global Communications +1 424 322 5166 Mary.Osako@Activision.com Sard Verbinnen & Co For US: Cassandra Bujarski / Devin Broda +1 310 201 2040 cbujarski@sardverb.com / dbroda@sardverb.com For Europe : Michael Henson / Jonathan Doorley +44 20 3178 8914 mhenson@sardverb.com / jdoorley@sardverb.com King Digital Entertainment Susannah Clark King Digital Entertainment , VP of Communications +44 7788 405 224 susannah.clark@king.com Brunswick Group For US: Bethany Sherman +1 212 333 3810 Eric Savitz +1 415 671 7676 kingteam@brunswickgroup.com For Europe : Natalia Dyett , Craig Breheny +44 20 7404 5959 Birgitta Henriksson +46 8 410 32 180 kingteam@brunswickgroup.com Investor Contacts Activision Blizzard Amrita Ahuja Activision Blizzard , SVP, Investor Relations +1 310 255 2075 Amrita.Ahuja@ActivisionBlizzard.com King Digital Entertainment Alice Ryder King Digital Entertainment , VP of Investor Relations +1 425 533 5706 alice.ryder@king.com Financial Adviser Contacts Activision Blizzard Goldman Sachs Ian Spaulding /Alekhya Uppalapati +1 310 407 5700 Michael Casey +44 20 7774 1000 King Digital Entertainment J.P. Morgan Mark Fiteny / Marco Caggiano /Xavier Loriferne +1 888 963 5089 Dwayne Lysaght / James Robinson +44 20 7742 4000

About Activision Blizzard and ABS Partners

Activision Blizzard, Inc. , a member of the S&P 500, is the world's most successful standalone interactive entertainment company. It develops and publishes games based on some of the most beloved entertainment franchises, including Call of Duty®, Destiny, Skylanders®, Guitar Hero®, World of Warcraft®, StarCraft®, Diablo®, and Hearthstone®: Heroes of Warcraft™. The company is one of the FORTUNE "100 Best Companies To Work For®" 2015. Headquartered in Santa Monica, California , it has operations throughout the world, and its games are played in 196 countries. Activision Blizzard makes games for leading interactive platforms. Activision Blizzard is a corporation organised and existing under the General Corporation Law of the State of Delaware, USA and is listed to trade on the NASDAQ under the ticker symbol "ATVI". More information about Activision Blizzard and its products can be found on the company's website, www.activisionblizzard.com.

ABS Partners C.V., a wholly-owned subsidiary of Activision Blizzard, Inc. , is a partnership formed in the Netherlands for the purpose of making the Acquisition. ABS Partners has not traded since its establishment, nor has it entered any obligations, other than in connection with the Acquisition and the financing of the Acquisition.

About King

King Digital Entertainment plc ( NYSE : KING) is a leading interactive entertainment company for the mobile world. It had a network of 330 million monthly unique users as of third quarter 2015, has developed more than 200 exclusive games, and offers games in over 200 countries and regions through its king.com and royalgames.com websites, Facebook, and mobile distribution platforms such as the Apple App Store , Google Play Store and Amazon Appstore. King has game studios in Stockholm , Malmö, London , Barcelona , Berlin , Singapore , and Seattle , along with offices in San Francisco , Malta , Seoul , Tokyo , Shanghai and Bucharest .

Activision Blizzard and King Advisers

Activision Blizzard's financial adviser is Goldman Sachs. Activision Blizzard has also received financial advice from Bank of America Merrill Lynch . Debevoise & Plimpton LLP , Mason Hayes & Curran and Allen & Overy LLP are providing legal advice.

King's financial adviser is J.P. Morgan. Fenwick & West LLP and William Fry are providing legal advice.

Responsibility for this Announcement

The directors of Activision Blizzard, Inc. and the sole manager of ABS Partners I, LLC (in its capacity as the general partner of ABS Partners C.V.) accept responsibility for the information contained in this Announcement other than the information relating to King, the King Group , and the directors of King and members of their immediate families, related trusts and persons connected with them, for which the directors of King accept responsibility. To the best of the knowledge and belief of Activision Blizzard, Inc. and the sole manager of ABS Partners I, LLC (in its capacity as the general partner of ABS Partners C.V.) (who have taken all reasonable care to ensure that such is the case), the information contained in this Announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

The directors of King accept responsibility for the information contained in this Announcement relating to King, the King Group and the directors of King and members of their immediate families, related trusts and persons connected with them (excepting information regarding Activision Blizzard's estimates, expectations, plans and projections for King and the King Group following completion of the Acquisition for which the directors of Activision Blizzard, Inc. accept responsibility). To the best of the knowledge and belief of the directors of King (who have taken all reasonable care to ensure that such is the case), the information contained in this Announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

Goldman Sachs, which is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom , is acting exclusively for Activision Blizzard and for no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Activision Blizzard for affording the protections afforded to clients of Goldman Sachs or for providing advice in connection with the contents of this Announcement or any matter referred to herein.

Bank of America Merrill Lynch is acting exclusively for Activision Blizzard and for no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Activision Blizzard for providing the protections afforded to its clients or for providing advice in connection with the contents of this Announcement or any matter referred to herein.

" Bank of America Merrill Lynch " is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A. , member FDIC . Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation, including, in the United States , Merrill Lynch, Pierce, Fenner & Smith Incorporated , which is a registered broker-dealer and member of FINRA and SIPC , and, in other jurisdictions, locally registered entities.

J.P. Morgan Limited (which conducts its UK investment banking business as J.P. Morgan Cazenove ) ("J.P. Morgan"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority , is acting as financial adviser exclusively for King and no one else in connection with the matters set out in this Announcement and will not regard any other person as its client in relation to the matters in this Announcement and will not be responsible to anyone other than King for providing the protections afforded to clients of J.P. Morgan or its affiliates, nor for providing advice in relation to any matter referred to herein.

Important Information for U.S. Investors

King intends to file the Scheme Document with the SEC and mail a copy to its shareholders in advance of the EGM and in connection with the Acquisition and the Scheme. Shareholders are urged to read the Scheme Document carefully when it becomes available because it will contain important information about King, the Acquisition, the Scheme and related matters. Shareholders will be able to obtain free copies of the Scheme Document and other documents filed with or furnished to the SEC by King through the website maintained by the SEC at www.sec.gov. In addition, shareholders will be able to obtain free copies of the Scheme Document from King by contacting ir@king.com.

The Acquisition relates to the securities of an Irish company which is a "foreign private issuer" as defined under Rule 3b-4 under the Exchange Act and will be governed by the Irish Takeover Rules and Irish law. Neither the proxy solicitation rules nor the tender offer rules under the Exchange Act will apply to the Scheme of Arrangement pursuant to which the Acquisition is to be effected. The Scheme will be subject to the disclosure requirements and practices applicable in Ireland to schemes of arrangements, which differ from the disclosure requirements under the proxy solicitation and tender offer rules of the Exchange Act.

King is incorporated under the laws of Ireland . Some or all of the directors of King are resident in countries other than the United States . As a result, it may not be possible for U.S. holders of King Shares to effect service of process within the United States upon King or such directors of King or to enforce against any of them U.S. judgements predicated upon the civil liability provisions of the U.S. securities laws. It may not be possible to sue King or its officers or directors in a non-U.S. court for violations of U.S. securities laws.

Forward-looking statements

Statements in this Announcement that are not historical facts are forward-looking statements, including, but not limited to, statements about the expectations, assumptions, beliefs, plans, intentions or strategies of Activision Blizzard , King or their respective boards of directors, as the case may be, regarding the future, including, but not limited to, statements about the Acquisition described herein, benefits and synergies of the Acquisition, projections of revenues, gross bookings, expenses, income or loss, adjusted EBITDA or adjusted EBITDA margin, earnings or loss per share, cash flow or other financial items, future opportunities, anticipated business levels, future financial or operating performance, planned activities and objectives, including those related to product releases, anticipated growth, market opportunities, strategies, competition and other expectations, targets for future periods, and assumptions underlying such statements. These forward-looking statements may often be identified by the use of words such as "will", "may", "could", "should", "would", "to be", "might", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "future", "positioned", "potential", "intend", "continue", "remain", "scheduled", "outlook", "set to", "subject to", "upcoming", "target" and variations of these words or similar expressions. Forward-looking statements are subject to business and economic risk, reflect Activision Blizzard and/or King management's current expectations and estimates, and are inherently uncertain and difficult to predict. Actual future results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to: uncertainties as to the timing of the Acquisition; uncertainties as to whether Activision Blizzard will be able to consummate the Acquisition; uncertainties as to whether shareholders will provide the requisite approvals for the Acquisition on a timely basis or at all; the possibility that competing offers will be made; the possibility that certain conditions to the consummation of the Acquisition will not be satisfied, including without limitation obtaining the requisite approval of the Scheme of Arrangement at the Scheme Meeting; the possibility that Activision Blizzard will be unable to obtain regulatory approvals for the Acquisition on a timely basis or at all, or be required, as a condition to obtaining regulatory approvals, to accept conditions that could reduce the anticipated benefits of the Acquisition; the possibility that shareholders will file lawsuits challenging the Acquisition, including actions seeking to rescind the Scheme of Arrangement or enjoin the consummation of the Acquisition; the ability to meet expectations regarding the accounting and tax treatments of the Acquisition; changes in relevant tax and other laws or regulations; the integration of King being more difficult, time-consuming or costly than expected; the diversion of Activision Blizzard and/or King management time and attention to issues relating to the Acquisition and integration; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) being greater than expected following the Acquisition; the difficulty retaining certain key employees of King and Activision Blizzard following the Acquisition; the possibility that Activision Blizzard may be unable to achieve expected synergies and operating efficiencies in connection with the Acquisition within the expected time-frames or at all; the scope, timing and outcome of any ongoing legal proceedings involving Activision Blizzard or King and the impact of any such proceedings on financial condition, results of operations and/or cash flows of Activision Blizzard , King or the combined company; the possibility that costs, fees, expenses or charges Activision Blizzard and/or King incur in connection with the Acquisition are greater than expected; the possibility that the Scheme may be terminated in circumstances that require King to reimburse certain expenses to Activision Blizzard or Activision Blizzard to pay a termination fee to King related to the Acquisition; the ability of Activision Blizzard , King or the combined company to protect intellectual property and preserve intellectual property rights; and changes in the economic and financial conditions of the businesses of Activision Blizzard , King, or the combined company.

In addition, with regard to Activision Blizzard , a number of important factors could cause Activision Blizzard's actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited to: sales levels of Activision Blizzard's titles; increasing concentration of revenue among a small number of titles; Activision Blizzard's ability to predict consumer preferences, including interest in specific genres and preferences among hardware platforms; the amount of Activision Blizzard's debt and the limitations imposed by the covenants in the agreements governing such debt; adoption rate and availability of new hardware (including peripherals) and related software, particularly during the console transitions; counterparty risks relating to customers, licensees, licensors and manufacturers; maintenance of relationships with key personnel, customers, financing providers, licensees, licensors, manufacturers, vendors, and third-party developers, including the ability to attract, retain and develop key personnel and developers that can create high quality titles; changing business models, including digital delivery of content and the increased prevalence of free-to-play games; product delays or defects; competition, including from used games and other forms of entertainment; rapid changes in technology and industry standards; possible declines in software pricing; product returns and price protection; the identification of suitable future acquisition opportunities and potential challenges associated with geographic expansion; the seasonal and cyclical nature of the interactive entertainment market; litigation risks and associated costs; protection of proprietary rights; shifts in consumer spending trends; capital market risks; applicable regulations; domestic and international economic, financial and political conditions and policies; tax rates and foreign exchange rates; and the impact of the current macroeconomic environment.

Further, with regard to King, a number of important factors could cause King's actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited to: the fact that a relatively small number of games continue to account for a substantial majority of King's revenue and gross bookings, and declines in popularity of these games could harm King's financial results; King's ability to develop new games and enhance existing games in a timely manner; delays to the launch of new games; revenues and gross bookings from King's new games not being sufficient to offset declines due to its more mature games; market acceptance of new games and enhancements to existing games; intense industry competition; King's reliance on the casual game format and the success of its efforts to expand beyond the casual format; the need to anticipate and successfully develop games for new technologies, platforms and devices; challenges in measuring key operating metrics, and real or perceived inaccuracies in such metrics; reliance on various third-party platforms; reliance on key personnel; acquisition-related risks, including King's ability to integrate recent acquisitions and unforeseen difficulties in developing and introducing new games from acquired companies and customer acceptance of such games; protection or enforcement of King's intellectual property rights; the continued effectiveness of King's marketing programs; litigation risks and associated costs; risks associated with operating and offering games in multiple jurisdictions; and general economic conditions and their impact on consumer spending and foreign currency exchange rates.

In addition, actual results are subject to other risks and uncertainties that relate more broadly to Activision Blizzard's and King's overall businesses, including those identified in "Risk Factors" included in Part I, Item 1A of Activision Blizzard's most recent annual report on Form 10-K or in Part I, Item 3.D of King's most recent annual report on Form 20-F and most recent quarterly report on Form 6-K.

Any forward-looking statements in this Announcement are based upon information available to Activision Blizzard , King and/or their respective boards of directors, as the case may be, as of the date of this Announcement and, while believed to be true when made, may ultimately prove to be incorrect. Subject to any obligations under applicable law, rules and regulations, none of Activision Blizzard , King or any member of their respective boards of directors undertakes any obligation to update any forward-looking statement whether as a result of new information, future developments or otherwise, or to conform any forward-looking statement to actual results, future events, or to changes in expectations. All subsequent written and oral forward-looking statements attributable to Activision Blizzard , King, their respective boards of directors or any person acting on behalf of any of them are expressly qualified in their entirety by this paragraph.

Basis of Accounting

Activision Blizzard prepares its financial information in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). King prepares its financial information in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Neither Activision Blizzard nor King has made any adjustments to the King IFRS basis financial information to conform to a U.S. GAAP basis of presentation.

Both Activision Blizzard and King use non-GAAP and non-IFRS (collectively, "non-GAAP") measures of financial performance. These non-GAAP financial measures are not intended to be considered in isolation from or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP or IFRS. Refer to Appendix V for additional information on the non-GAAP measures and reconciliation to U.S. GAAP or IFRS. Trailing twelve month financial information is based on financial information through 30 September 2015 as published by Activision Blizzard and King. Estimated 2015 and 2016 measurements of financial information for Activision Blizzard and King are based on IBES estimates as of 30 October 2015 .

No Profit Forecast / Asset Valuations

Save for the specific information relating to King's third quarter earnings or fourth quarter outlook set out in this Announcement, no statement in this Announcement is intended to constitute a profit forecast for any period, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for King or Activision Blizzard or ABS Partners , as appropriate. No statement in this Announcement constitutes an asset valuation.

Rule 2.10 of the Irish Takeover Rules

As at close of business on 30 October 2015 King confirms that King's issued share capital is comprised of 40,000 euro deferred shares of €1.00 each and 315,541,571 King Shares (inclusive of 2,465,086 Linked Shares). The King Shares are admitted to trading on NYSE under the ticker symbol KING. The International Securities Identification Number for the King Shares is IE00BKJ9QQ58.

There are outstanding options over 23,464,158 King Shares which have been granted by King and have exercise prices ranging from $0.00008 to $31.37 per King Share and there are outstanding King RSUs over 5,617,998 King Shares.

Disclosure Requirements for Certain Holders of King Securities

Under the provisions of Rule 8.3 of the Irish Takeover Rules, if any person is, or becomes, "interested" (directly or indirectly) in, 1% or more of any class of "relevant securities" of King, all "dealings" in any "relevant securities" of King (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by not later than 3:30 pm ET / New York time on the "business day" following the date of the relevant transaction. This requirement will continue until the Effective Date or the Offer Period otherwise ends. If two or more persons co-operate on the basis of any agreement, either express or tacit, either oral or written, to acquire an "interest" in "relevant securities" of King, they will be deemed to be a single person for the purpose of Rule 8.3 of the Irish Takeover Rules.

Under the provisions of Rule 8.1 of the Irish Takeover Rules, all "dealings" in "relevant securities" of King by Activision Blizzard or ABS Partners , or by any party acting in concert with it, must also be disclosed by no later than 12 noon ET / New York time on the "business" day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, can be found on the Irish Takeover Panel's website at www.irishtakeoverpanel.ie.

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Irish Takeover Rules, which can also be found on the Irish Takeover Panel's website.

If you are in any doubt as to whether or not you are required to disclose a dealing under Rule 8, please consult the Irish Takeover Panel's website at www.irishtakeoverpanel.ie or contact the Irish Takeover Panel on telephone number +353 1 678 9020 or fax number +353 1 678 9289.

Further Information

This Announcement is not intended to, and does not, constitute an offer to purchase, sell, subscribe for or exchange, or the solicitation of an offer to purchase, sell, subscribe for or exchange or an invitation to purchase, sell, subscribe for or exchange any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Acquisition or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. This Announcement does not constitute a prospectus or an equivalent document and it is not intended to, and does not, constitute or form any part of an offer or invitation to sell or purchase or subscribe for any securities or a solicitation of an offer to buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Acquisition or otherwise.

The release, publication or distribution of this Announcement in or into certain jurisdictions may be restricted by the laws of those jurisdictions, including any Restricted Jurisdictions. Accordingly, copies of this Announcement and all other documents relating to the Acquisition are not being, and must not be, released, published, mailed or otherwise forwarded, distributed or sent in, into or from any Restricted Jurisdiction. Persons receiving such documents (including, without limitation, nominees, trustees and custodians) should observe these restrictions. Failure to do so may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies involved in the Acquisition disclaim any responsibility or liability for the violations of any such restrictions by any person.

This Announcement has been prepared for the purposes of complying with Irish law and the Irish Takeover Rules and the information disclosed may not be the same as that which would have been disclosed if this Announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside Ireland .

The full text of the conditions to which the Acquisition is subject and reference to certain further terms of the Acquisition are set out in Appendix I.

Any response in relation to the Acquisition should be made only on the basis of the information contained in the Scheme Document or any other document by which the Acquisition is made. King Shareholders are advised to read carefully the formal documentation in relation to the proposed Acquisition once the Scheme Document has been despatched to them.

This Announcement, which is published jointly by Activision Blizzard and King, is made pursuant to Rule 2.5 of the Irish Takeover Rules.

Activision Blizzard reserves the right, subject to the prior approval of the Panel, to elect to implement the Acquisition by way of an Offer in the circumstances described in and subject to the terms of the Transaction Agreement. Without limiting the provisions of the Transaction Agreement, in such event, such Offer will be implemented on terms and conditions that are at least as favourable to the King Shareholders (except for an acceptance condition set at 80% of the nominal value of the King Shares to which such an Offer relates and which are not already beneficially owned by Activision Blizzard , if any) as those which would apply in relation to the Scheme.

Pursuant to Rule 2.6(c) of the Irish Takeover Rules, this Announcement will be available to Activision Blizzard employees on activisionblizzard.acquisitionoffer.com and to King employees on King's website, http://investor.king.com/acquisition.

A copy of the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by Activision Blizzard will be made available by Activision Blizzard free of charge, subject to certain restrictions relating to persons in restricted jurisdictions, on activisionblizzard.acquisitionoffer.com by no later than 12 noon ET / New York time on 3 November 2015 . King will also make the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by King available on its website free of charge, subject to certain restrictions relating to persons in restricted jurisdictions at http://investor.king.com/acquisition by no later than 12 noon ET / New York time on 3 November 2015 .

Neither the content of any website referred to in this Announcement nor the content of any website accessible from hyperlinks it is incorporated into, or forms part of, this Announcement.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN, INTO OR FROM ANY RESTRICTED JURISDICTION

FOR IMMEDIATE RELEASE

2 November 2015

RECOMMENDED ACQUISITION FOR CASH BY

ABS PARTNERS C.V.

(A WHOLLY OWNED SUBSIDIARY OF ACTIVISION BLIZZARD)

OF

KING DIGITAL ENTERTAINMENT PLC

TO BE IMPLEMENTED BY MEANS OF A SCHEME OF ARRANGEMENT

UNDER CHAPTER 1 OF PART 9 OF THE COMPANIES ACT 2014

1. INTRODUCTION The King Board and the Activision Blizzard Board are pleased to announce that they have reached agreement on the terms of the recommended acquisition by ABS Partners , a wholly-owned subsidiary of Activision Blizzard , of the entire issued and to be issued ordinary share capital of King by means of a scheme of arrangement under Chapter 1 of Part 9 of the Act. The Acquisition will be on the terms and subject to the conditions set out below, and the implementation of the Acquisition and the Scheme will be subject to the conditions referred to in Appendix I of this Announcement, which will also be set out in the Scheme Document.

2. ACQUISITION TERMS It is intended that the issued ordinary share capital of King will be acquired by way of a court sanctioned scheme of arrangement. The Acquisition and the Scheme are subject to the conditions set out in Appendix I of this Announcement and the further terms to be set out in the Scheme Document. King Shareholders will be entitled to receive US$18.00 in cash for each Scheme Share they hold, valuing the entire issued and to be issued ordinary share capital of King at approximately US$5.9 billion . The terms of the Acquisition represent a premium of approximately: • 20% to the Closing Price of US$14.96 per King Share on 30 October 2015 (being the last practicable date prior to the publication of this Announcement); • 26% to King's enterprise value (which excludes net cash) on 30 October 2015 ; • 23% to the volume weighted-average price of US$14.63 per King Share for the one month period ended 30 October 2015 ; and • 27% to the volume weighted-average price of US$14.17 per King Share for the three month period ended 30 October 2015 .

3. KING BACKGROUND TO AND REASONS FOR RECOMMENDING THE ACQUISITION King is a leading interactive entertainment company and has been developing casual online games since 2003. King has spent over a decade building a deep understanding of players' entertainment habits and needs, while continuing to innovate its product offerings. This expertise has allowed King to build an extensive global network of players, which as of third quarter 2015, consisted of 330 million monthly unique users, and become a leader in the casual gaming category. Following its initial public offering in March 2014 , King has pursued a strategy focused on the continued creation of successful new mobile games, continually innovating on its already popular global game franchises and applying its dedicated network of players to enter new game genres. This strategy has allowed King to create a strong, cash generative games portfolio, including its key franchises—Candy Crush®, Farm Heroes®, Bubble Witch® and Pet Rescue®. Furthermore, in the third quarter 2015 and for the third consecutive quarter, two King games were among the top five grossing mobile games in the United States . In considering the proposed offer made by Activision Blizzard , the King Board has taken into account King's accomplishments in becoming an industry leader and its progress in delivering on its strategy. The King Board also weighed these factors against the challenges King faces, including the risks and challenges that King faces in implementing its strategy and the strong competitive dynamics in the evolving interactive entertainment sector that call for continuous innovation to drive increasing player engagement and improved monetization. In particular, King's continued success depends, in part, on its ability to consistently develop new successful games, expand its franchises and enhance its existing portfolio of games in ways that improve the gaming experience for players while encouraging the purchase of virtual items within its games. King's ability to achieve these goals is subject to a number of challenges, including the need to anticipate and respond to changes in players' preferences and to compete successfully against a large and growing number of industry participants. While King has maintained a market-leading position since its IPO through the execution of its strategy, the King Board considered the possibility that only a small number of King's new games, if any, may become successful and generate significant purchases of virtual items, and contribute to the growth of the overall business. The King Board noted that these risks could prevent King from achieving its anticipated financial results, and that the Acquisition would eliminate the exposure of King's current shareholders to these risks. The King Directors believe that Activision Blizzard's cash offer is attractive given the balance of future opportunities, risks and competitive forces confronting the business. Following careful consideration of the above factors and the full range of strategic options available to King, the King Board believes that the price of the Acquisition fairly reflects the current market position of the business and substantially recognises King's growth prospects, as well as the risks associated with those prospects, and provides certainty, in cash, to King Shareholders today.

4. ACTIVISION BLIZZARD BACKGROUND TO AND REASONS FOR THE ACQUISITION Activision Blizzard, Inc. , a member of the S&P 500, is the world's most successful standalone interactive entertainment company. It develops and publishes games based on some of the most beloved entertainment franchises, including Call of Duty®, Destiny, Skylanders®, Guitar Hero®, World of Warcraft®, StarCraft®, Diablo®, and Hearthstone®: Heroes of Warcraft™. As a leader in the interactive entertainment business, Activision Blizzard recognizes the importance of mobile gaming as part of its envisioned growth strategy. Mobile gaming is expected to be the largest and fastest-growing area of interactive entertainment—it is expected to generate over $36 billion of revenue by the end of 2015, and grow cumulatively by over 50% from 2015 to 2019. Activision Blizzard believes that King provides it with key capabilities in mobile gaming that will help Activision Blizzard to execute its strategy and further position it as a leading interactive entertainment company across key platforms. Activision Blizzard also believes it is important in its business to have strong intellectual property. Activision Blizzard believes that King has a strong portfolio of leading intellectual property, including two of the top five highest-grossing mobile games in the U.S. (Candy Crush Saga®, Candy Crush Soda Saga™), and one of the largest global entertainment networks, with approximately half a billion monthly active users, which it believes could lead to potential benefits for its users and further broaden its audience. As a result, Activision Blizzard believes this Acquisition accelerates long-term growth opportunities across platforms, genres, and audiences and creates value for its shareholders. It will further Activision Blizzard's position as one of the most profitable interactive entertainment companies and Activision Blizzard believes that the Acquisition will be accretive to 2016 estimated non-GAAP revenues and earnings per share by approximately 30% and significantly accretive to 2016 estimated free cash flow per share. Activision Blizzard expects the combined company to maintain a disciplined capital allocation policy and strong balance sheet. Activision Blizzard has the intention to work with King employees and management to pursue Activision Blizzard's goal of expanding its mobile gaming presence and continue investing in King's game franchises. Activision Blizzard believes that King's position as a leading mobile game developer makes it a natural candidate to join Activision Blizzard's efforts. Activision Blizzard believes that the Acquisition provides King the potential ability to accelerate the execution of its strategy and benefit from Activision Blizzard's expertise to address some of the challenges the business faces. Activision Blizzard believes that King should be able to apply Activision Blizzard's existing expertise in mid-core and alternative gaming markets, thus providing both parties with expanded opportunities and enhanced support.

5. KING RECOMMENDATION The King Directors, who have been so advised by J.P. Morgan as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the King Directors, J.P. Morgan has taken into account the commercial assessments of the King Directors. J.P. Morgan is acting as independent financial adviser to the King Directors in relation to the Acquisition for the purposes of Rule 3 of the Irish Takeover Rules. The King Board unanimously recommended to King Shareholders to vote in favour of the Acquisition and the Scheme, as the directors of King who are King Shareholders intend to do in respect of their own beneficial holdings. Messrs. Zacconi, Kurgan and Knutsson have irrevocably undertaken (in their capacity as shareholders) to vote in favour of the Acquisition and the Scheme in respect of their own beneficial holdings of 49,408,045 King Shares representing, in aggregate, approximately 16% of the issued share capital of King on 30 October 2015 (being the last practicable date prior to the publication of this Announcement). In considering the recommendation of the King Board with respect to the approval of the Acquisition and the Scheme, King Shareholders should be aware that certain King Directors, namely Messrs. Zacconi, Kurgan and Knutsson have entered into long-term employment contracts with Activision Blizzard (in the case of Messrs. Zacconi and Kurgan) or with a King subsidiary (in the case of Mr. Knutsson ) at Activision Blizzard's request. The King Board considers it important that King Shareholders are aware of these arrangements. 6. BOARD, MANAGEMENT AND EMPLOYEES OF KING Activision Blizzard attaches great importance to the skills and experience of the management and employees of King. As such, Activision Blizzard does not currently intend to make any material changes to King's staffing levels, nor does it have any current plans to change the locations of King's places of business. The Activision Blizzard Board confirms that, where employees of the King Group have existing employment rights, including pension rights, under applicable laws, those rights will be safeguarded following the Scheme becoming Effective. Activision Blizzard or a King subsidiary has also entered into employment arrangements with certain members of King's senior management team, conditional on the Acquisition becoming Effective. As required by, and solely for the purposes of, Rule 16.2 of the Irish Takeover Rules, J.P. Morgan has confirmed to the Panel that it has reviewed the management incentivisation arrangements referred to above together with other information deemed relevant and considers them in its opinion to be fair and reasonable so far as the King Shareholders are concerned. In providing its advice, J.P. Morgan has taken into account the commercial assessments of the King Directors. The Panel has consented to these arrangements. J.P. Morgan's confirmation to the Panel addressed only the matters required to be addressed by Rule 16.2 of the Irish Takeover Rules and addressed no other matter. J.P. Morgan's confirmation to the Panel did not address, among other things, the relative merits of the Acquisition as compared to any other transaction or business strategy, the merits of the decision by King to engage in the Acquisition or the fairness to King Shareholders of the consideration payable by Activision Blizzard to King Shareholders pursuant to the terms of the Acquisition. The current directors of King will resign from King on or after the Effective Date.

7. STRUCTURE OF THE ACQUISITION The Acquisition is expected to be effected by means of a Scheme of Arrangement between King and the Scheme Shareholders. The Scheme will involve an application by King to the High Court to sanction the Scheme. Under the Scheme (which will be subject to the conditions set out in Appendix I of this Announcement and which will also be set out in the Scheme Document), Scheme Shareholders will receive the Cash Consideration in return for the cancellation of their King Shares. The Scheme of Arrangement is an arrangement made between King and Scheme Shareholders under Chapter 1 of Part 9 of the Act and is subject to the approval of the High Court . If the Scheme becomes Effective, all King Shares will be cancelled pursuant to Sections 84 to 86 of the Act or transferred to ABS Partners pursuant to the Scheme of Arrangement (if applicable). King will then issue new King Shares to ABS Partners in place of the King Shares cancelled pursuant to the Scheme and ABS Partners will pay the Cash Consideration in respect of the Scheme Shares to the former King Shareholders. As a result of these arrangements, King will become a wholly owned subsidiary of ABS Partners . The Acquisition is conditional on the Scheme becoming Effective by no later than 11.59 p.m. (Irish time) on the End Date (or such earlier date as may be specified by the Panel or such later date to which ABS Partners and King may, with any required consent of the Panel, agree and which, if High Court approval is required, the High Court may allow). The conditions to the Acquisition and the Scheme are set out in full in Appendix I of this Announcement. The implementation of the Scheme and the Acquisition is conditional, amongst other things, upon: • the approval of the Scheme by a majority in number of the King Shareholders representing at least 75% in value of the King Shares at the Voting Record Time held by such holders in each relevant class, present and voting either in person or by proxy, at the Scheme Meeting (or at any adjournment of such meeting) held no later than the End Date; • the EGM Resolutions being duly passed by the requisite majority of King Shareholders at the EGM (or at any adjournment of such meeting) held no later than the End Date; • the sanction by the High Court (with or without modification (but subject to such modification being acceptable to each of King and Activision Blizzard )) of the Scheme pursuant to Sections 449 to 455 of the Act and the confirmation of the related Capital Reduction involved therein by the High Court on or before the End Date; and • copies of the Court Order and the minute required by Section 86 of the Act in respect of the Capital Reduction being delivered for registration to the Registrar of Companies and registration of the Court Order and minute confirming the Capital Reduction involved in the Scheme by the Registrar of Companies. Assuming the necessary approvals from the King Shareholders have been obtained and all other conditions have been satisfied or, where applicable, waived, the Scheme will become Effective upon delivery to the Registrar of Companies of a copy of the Court Order, together with the minute required by Section 86(1) of the Act confirming the Capital Reduction and registration of the Court Order and minute by the Registrar of Companies. If the Scheme becomes Effective, it will be binding on all King Shareholders, irrespective of whether or not they attended or voted at the Scheme Meeting or the EGM (and, if they attended and voted, whether or not they voted in favour). Activision Blizzard reserves the right, subject to the prior approval of the Panel, to elect to implement the Acquisition by way of an Offer in the circumstances described in and subject to the terms of the Transaction Agreement. Without limiting the provisions of the Transaction Agreement, in such event, such Offer will be implemented on terms and conditions that are at least as favourable to the King Shareholders as those which would apply in relation to the Scheme (except in relation to the acceptance condition which will be set at 80% of the nominal value of the King Shares to which such an Offer relates (other than King Shares that are already beneficially owned by Activision Blizzard , if any)). The Scheme Document, containing further details of the Acquisition (including notices of the Meetings) and the full terms and conditions of the Scheme, will be issued to King Shareholders, and, for information only, to holders of King Options or King Share Awards, within 28 days of this Announcement (unless otherwise agreed with the Panel). Resolutions to approve the Acquisition will be voted upon at the Meetings. The Scheme Document will also specify the actions to be taken by King Shareholders. It is currently expected that the Acquisition and the Scheme will become Effective prior to Spring 2016.

8. ABOUT KING King Digital Entertainment plc ( NYSE : KING) is a leading interactive entertainment company for the mobile world. It had a network of 330 million monthly unique users as of third quarter 2015, has developed more than 200 exclusive games, and offers games in over 200 countries and regions through its king.com and royalgames.com websites, Facebook, and mobile distribution platforms such as the Apple App Store , Google Play Store and Amazon Appstore. King has game studios in Stockholm , Malmö, London , Barcelona , Berlin , Singapore , and Seattle , along with offices in San Francisco , Malta , Seoul , Tokyo , Shanghai and Bucharest . 9. ABOUT ACTIVISION BLIZZARD AND ABS PARTNERS Activision Blizzard, Inc. , a member of the S&P 500, is the world's most successful standalone interactive entertainment company. It develops and publishes games based on some of the most beloved entertainment franchises, including Call of Duty®, Destiny, Skylanders®, Guitar Hero®, World of Warcraft®, StarCraft®, Diablo®, and Hearthstone®: Heroes of Warcraft™. The company is one of the FORTUNE "100 Best Companies To Work For®" 2015. Headquartered in Santa Monica, California , it has operations throughout the world, and its games are played in 196 countries. Activision Blizzard makes games for leading interactive platforms. Activision Blizzard is a corporation organised and existing under the General Corporation Law of the State of Delaware, USA and is listed to trade on the NASDAQ under the ticker symbol "ATVI". More information about Activision Blizzard and its products can be found on the company's website, www.activisionblizzard.com. ABS Partners C.V., a wholly-owned subsidiary of Activision Blizzard, Inc. , is a partnership formed in the Netherlands for the purpose of making the Acquisition. ABS Partners has not traded since its establishment, nor has it entered any obligations, other than in connection with the Acquisition and the financing of the Acquisition. 10. FINANCING OF THE ACQUISITION The Cash Consideration payable by Activision Blizzard under the terms of the Acquisition will be funded from approximately US$3.6 billion of offshore cash on the balance sheet of the Activision Blizzard Group and by an incremental term loan committed by Bank of America Merrill Lynch and Goldman Sachs Bank USA , as incremental lenders, under Activision Blizzard's existing credit agreement in the amount of US$2.3 billion . Further information on the corporate structure of Activision Blizzard and the Cash Consideration will be set out in the Scheme Document. Full payment of the Cash Consideration would involve a maximum cash payment of approximately US$5.9 billion . Goldman Sachs, financial advisor to Activision Blizzard and ABS Partners , is satisfied that sufficient resources are available to ABS Partners to satisfy in full the consideration payable to King Shareholders under the terms of the Acquisition. 11. EFFECT OF ACQUISITION ON KING OPTIONS AND KING SHARE AWARDS Appropriate proposals will be made to holders of King Options or King Share Awards at or around the time of the circulation of the Scheme Document. 12. DELISTING AND CANCELLATION OF TRADING As soon as it is appropriate and possible to do so, and subject to the Scheme becoming Effective, ABS Partners intends to cause King to apply for cancellation of the listing and trading of King's Shares on the NYSE . Subject to any applicable requirements of the NYSE , it is anticipated that the last day of dealing in King's Shares on the NYSE will be on or about the Effective Date. It is intended that King will be re-registered as a private limited company as part of the Scheme.

13. EXPENSES REIMBURSEMENT AGREEMENT King has entered into an expenses reimbursement agreement, dated 2 November 2015 , with Activision Blizzard , the terms of which have been approved by the Panel. Under the Expenses Reimbursement Agreement, King has agreed to pay specific, quantifiable, third party costs and expenses incurred by Activision Blizzard and ABS Partners in connection with the Acquisition in the circumstances outlined below. The liability of King to pay these amounts is limited to a maximum amount equal to one percent (1%) of the total value of the issued share capital of King that is the subject of the Acquisition (excluding any amount in respect of VAT incurred by Activision Blizzard attributable to such third party costs to the extent that it is recoverable by Activision Blizzard ). The circumstances in which such payment will be made are: (a) where the Transaction Agreement is terminated: a. by Activision Blizzard as a result of King approving, recommending or declaring advisable, or proposing publicly to approve, recommend or declare advisable, any King Alternative Proposal; or b. by King as a result of King notifying Activision Blizzard of such termination in accordance with the Transaction Agreement at any time following delivery of a Final Recommendation Change Notice; or c. by Activision Blizzard as a result of King's willful breach or failure to perform in any material respect any of its representations, warranties, covenants or other agreements contained in the Transaction Agreement, which material breach or failure to perform: i. would result in a failure of any of the conditions; and ii. if curable, was not cured within 30 days following Activision Blizzard's delivery of written notice to King of such breach or failure to perform (which notice shall state Activision Blizzard's intention to terminate the Transaction Agreement and the basis for such termination); or (b) prior to the Scheme Meeting, a King Alternative Proposal has been publicly disclosed or an intention (whether or not conditional) to make a King Alternative Proposal has been publicly disclosed or announced by any person and, in either case, has not been publicly withdrawn in compliance with the Irish Takeover Rules at the time the Transaction Agreement is terminated and such King Alternative Proposal is consummated within nine months after such termination. J.P. Morgan and the King Board have each confirmed in writing to the Panel that, in the opinion of J.P. Morgan and the King Board (respectively), in the context of the Note to Rule 21.2 of the Irish Takeover Rules and the Acquisition, the Expenses Reimbursement Agreement is in the best interests of the King Shareholders. The Panel has consented to King entering into the Expenses Reimbursement Agreement. A copy of the Expenses Reimbursement Agreement will be furnished by King with the SEC on Form 6-K and filed by Activision Blizzard with SEC on Form 8-K on or around the date of this Announcement. 14. TRANSACTION AGREEMENT King, Activision Blizzard and ABS Partners have entered into a Transaction Agreement dated 2 November 2015 which contains, amongst other things, certain obligations and commitments in relation to the implementation of the Acquisition and provisions in relations to the conduct of King's business up to the Effective Date. Further information regarding the Transaction Agreement and a summary of its principal terms will be set out in the Scheme Document. A copy of the Transaction Agreement is set out in Appendix VI to this Announcement, and a copy of the Transaction Agreement will be furnished by King with the SEC on Form 6-K and filed by Activision Blizzard with the SEC on Form 8-K on or around the date of this Announcement.

15. IRREVOCABLE UNDERTAKINGS Activision Blizzard and ABS Partners have received irrevocable undertakings from Messrs. Riccardo Zacconi , Stephane Kurgan , Sebastian Knutsson , being members of the King Board, that they will vote in favour of the Proposals and Resolutions at the Meetings in their capacity as shareholders (or, in the event that the Acquisition is implemented by way of an Offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the Offer or procure acceptance of the Offer) in respect of their entire beneficial holdings of King Shares amounting to, in aggregate, 49,408,045 King Shares, representing approximately 16% of the issued share capital of King on 30 October 2015 (being the last practicable date prior to the publication of this Announcement). In addition, Activision Blizzard and ABS Partners have received irrevocable undertakings from certain other King Shareholders, namely Bellaria Holding S.à r.l. and Mr. Thomas Hartwig , King's Chief Technology Officer, that they will vote in favour of the Proposals and Resolutions to be considered at the Meetings (or, in the event that the Acquisition is implemented by way of an Offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the Offer or procure acceptance of the Offer) in respect of their entire beneficial holdings of King Shares amounting to, in aggregate, 147,107,666 King Shares, representing approximately 47% of the issued share capital of King on 30 October 2015 (being the last practicable date prior to the publication of this Announcement). In addition, Activision Blizzard and ABS Partners have received irrevocable undertakings from Messrs. Robert Miller , Marcus Jacobs , Tjodolf Sommestad and Nicholas Pointon and Ms. Frances Williams and Jill Kyne , being holders of Linked Shares, that in their capacity as holders of Linked Shares they will vote in favour of the matters and resolutions to be considered at the relevant class meetings relating to approval of the Scheme (or, in the event that the Acquisition is implemented by way of an Offer on terms and conditions at least as favourable, in aggregate, as the Scheme, to accept the Offer or procure acceptance of the Offer) in respect of their entire beneficial holdings of Linked Shares (as applicable) amounting to, in aggregate, 190,790 Linked Shares which, together with the commitments from Messrs. Zacconi and Kurgan referred to above (which amount to 2,077,080 Linked Shares, in aggregate), represents approximately 92% of the issued linked share capital on 30 October 2015 (being the last practicable date prior to the publication of this Announcement). The irrevocable undertakings referred to above will terminate upon the occurrence of certain events, including termination of the Transaction Agreement in accordance with its terms. Copies of the forms of the irrevocable undertakings referred to above will be furnished by King with the SEC on Form 6-K and filed by Activision Blizzard with the SEC on Form 8-K on or around the date of this Announcement. 16. DISCLOSURE OF INTERESTS IN RELEVANT SECURITIES OF KING At the date of this Announcement, so far as Activision Blizzard and ABS Partners are aware, neither Activision Blizzard nor ABS Partners holds any King Shares. As at 30 October 2015 , which is the last practicable date prior to the publication of this Announcement, none of Activision Blizzard nor ABS Partners or (so far as Activision Blizzard or ABS Partners is aware) any other person Acting in Concert with Activision Blizzard or ABS Partners had any King Shares or had any interest, or held any short position, in any Relevant Securities of King and none of Activision Blizzard nor ABS Partners or (so far as Activision Blizzard or ABS Partners is aware) any person Acting in Concert with Activision Blizzard or ABS Partners has any arrangement to which Rule 8.7 applies relating to Relevant Securities of King. For these purposes, "associate" and "arrangement to which Rule 8.7 applies" have the meanings given to those terms in the Irish Takeover Rules. An "arrangement to which Rule 8.7 applies" includes any indemnity or option arrangement, and any agreement or understanding, formal or informal, of whatever nature, between two or more persons relating to Relevant Securities which is, or may be, an inducement to one or more of such persons to deal or refrain from dealing in such securities. In the interests of confidentiality, Activision Blizzard and Goldman Sachs have made only limited enquiries in respect of certain parties who may be deemed by the Panel to be Acting in Concert with them for the purposes of the Acquisition. Enquiries of such parties will be made as soon as practicable following the date of this Announcement and any disclosure in respect of such parties will be disclosed to the Panel and included in the Scheme Document. 17. GENERAL The Acquisition and the Scheme will be subject to the conditions set out in Appendix I, which will also be set out in the Scheme Document. The Scheme Document will include full details of the Acquisition and will be accompanied by the appropriate forms of proxy. These will be despatched to King Shareholders and, for information only, to holders of King Options or King Share Awards, as soon as practicable, together with notices of the Scheme Meeting and the EGM and the expected timetable, and will specify the necessary action to be taken by the King Shareholders. The Acquisition and the Scheme will be governed by the laws of Ireland and will be subject to the applicable requirements of the Irish Takeover Rules, the NYSE and applicable laws. Appendix II and Appendix V contain a summary of the sources of information and bases of calculation for certain items contained in this Announcement. Additional information is provided in Appendix III. Certain definitions and expressions used in this Announcement are set out in Appendix IV. Appendix VI contains a copy of the Transaction Agreement. Activision Blizzard's financial adviser is Goldman Sachs. Activision Blizzard has also received financial advice from Bank of America Merrill Lynch . Debevoise & Plimpton LLP , Mason Hayes & Curran and Allen & Overy LLP are providing legal advice. King's financial adviser is J.P. Morgan. Fenwick & West LLP and William Fry are providing legal advice. This Announcement is being made pursuant to Rule 2.5 of the Irish Takeover Rules.

Conference Call, Webcast, Investor Presentation and Copy of Announcement

Activision Blizzard and King will host a conference call at 8:00 a.m. ET / New York time tomorrow, 3 November 2015 , to review the Acquisition and host a question and answer session. To access the conference call, interested parties may dial 888-596-2572 (domestic callers) or 913-312-0653 (international callers). The Conference ID Number is 9960349. Participants can also listen to a live webcast of the call through the Investor Relations page of Activision Blizzard's website at investor.activision.com. During the conference call and webcast, management will review a presentation summarizing the Acquisition which can be accessed at investor.activision.com or at activisionblizzard.acquisitionoffer.com. A webcast replay will be available for the duration of the offer period at activisionblizzard.acquisitionoffer.com. Please call five minutes in advance to ensure that you are connected. Questions and answers will be taken only from participants on the conference call. For the webcast, please allow 15 minutes to register, download and install any necessary software.

Simultaneous with this Announcement, Activision Blizzard issued its third quarter 2015 results in a separate release. Activision Blizzard plans to address questions regarding its quarterly financial results during a separate portion of the conference call scheduled at 8:00 a.m. ET / New York time tomorrow, 3 November 2015 . Activision Blizzard previously planned to issue its earnings following the close of the market tomorrow. The previously scheduled call following the markets close tomorrow has been cancelled.

King will announce third quarter 2015 results and hold its conference call for analysts and investors on 4 November 2015 as regularly scheduled.

A copy of the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by Activision Blizzard will be made available by Activision Blizzard free of charge, subject to certain restrictions relating to persons in restricted jurisdictions, on activisionblizzard.acquisitionoffer.com by no later than 12 noon ET / New York time on 3 November 2015 . King will also make the Announcement and the documents required to be published pursuant to the Irish Takeover Rules by King available on its website free of charge, subject to certain restrictions relating to persons in restricted jurisdictions at http://investor.king.com/acquisition by no later than 12 noon ET / New York time on 3 November 2015 .

Contact Information Media Contacts Activision Blizzard Mary Osako Activision Blizzard , SVP, Global Communications +1 424 322 5166 Mary.Osako@Activision.com Sard Verbinnen & Co For US: Cassandra Bujarski / Devin Broda +1 310 201 2040 cbujarski@sardverb.com / dbroda@sardverb.com For Europe : Michael Henson / Jonathan Doorley +44 20 3178 8914 mhenson@sardverb.com / jdoorley@sardverb.com King Digital Entertainment Susannah Clark King Digital Entertainment , VP of Communications +44 7788 405 224 susannah.clark@king.com Brunswick Group For US: Bethany Sherman +1 212 333 3810 Eric Savitz +1 415 671 7676 kingteam@brunswickgroup.com For Europe : Natalia Dyett , Craig Breheny +44 20 7404 5959 Birgitta Henriksson +46 8 410 32 180 kingteam@brunswickgroup.com Investor Contacts Activision Blizzard Amrita Ahuja Activision Blizzard , SVP, Investor Relations +1 310 255 2075 Amrita.Ahuja@ActivisionBlizzard.com King Digital Entertainment Alice Ryder King Digital Entertainment , VP of Investor Relations +1 425 533 5706 alice.ryder@king.com Financial Adviser Contacts Activision Blizzard Goldman Sachs Ian Spaulding /Alekhya Uppalapati +1 310 407 5700 Michael Casey +44 20 7774 1000 King Digital Entertainment J.P. Morgan Mark Fiteny / Marco Caggiano /Xavier Loriferne +1 888 963 5089 Dwayne Lysaght / James Robinson +44 20 7742 4000

Responsibility for this Announcement

The directors of Activision Blizzard, Inc. and the sole manager of ABS Partners I, LLC (in its capacity as the general partner of ABS Partners C.V.) accept responsibility for the information contained in this Announcement other than the information relating to King, the King Group , and the directors of King and members of their immediate families, related trusts and persons connected with them for which the directors of King accept responsibility. To the best of the knowledge and belief of Activision Blizzard, Inc. and the sole manager of ABS Partners I, LLC (in its capacity as the general partner of ABS Partners C.V.) (who have taken all reasonable care to ensure that such is the case), the information contained in this Announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

The directors of King accept responsibility for the information contained in this Announcement relating to King, the King Group and the directors of King and members of their immediate families, related trusts and persons connected with them (excepting information regarding Activision Blizzard's estimates, expectations, plans and projections for King and the King Group following completion of the Acquisition for which the directors of Activision Blizzard, Inc. accept responsibility). To the best of the knowledge and belief of the directors of King (who have taken all reasonable care to ensure that such is the case), the information contained in this Announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

Goldman Sachs, which is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom , is acting exclusively for Activision Blizzard and for no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Activision Blizzard for affording the protections afforded to clients of Goldman Sachs or for providing advice in connection with the contents of this Announcement or any matter referred to herein.

Bank of America Merrill Lynch is acting exclusively for Activision Blizzard and for no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Activision Blizzard for providing the protections afforded to its clients or for providing advice in connection with the contents of this Announcement or any matter referred to herein.

" Bank of America Merrill Lynch " is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A. , member FDIC . Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation, including, in the United States , Merrill Lynch, Pierce, Fenner & Smith Incorporated , which is a registered broker-dealer and member of FINRA and SIPC , and, in other jurisdictions, locally registered entities.

J.P. Morgan Limited (which conducts its UK investment banking business as J.P. Morgan Cazenove ) ("J.P. Morgan"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority , is acting as financial adviser exclusively for King and no one else in connection with the matters set out in this Announcement and will not regard any other person as its client in relation to the matters in this Announcement and will not be responsible to anyone other than King for providing the protections afforded to clients of J.P. Morgan or its affiliates, nor for providing advice in relation to any matter referred to herein.

Important Information for U.S. Investors

King intends to file the Scheme Document with the SEC and mail a copy to its shareholders in advance of the EGM and in connection with the Acquisition and the Scheme. Shareholders are urged to read the Scheme Document carefully when it becomes available because it will contain important information about King, the Acquisition, the Scheme and related matters. Shareholders will be able to obtain free copies of the Scheme Document and other documents filed with or furnished to the SEC by King through the website maintained by the SEC at www.sec.gov. In addition, shareholders will be able to obtain free copies of the Scheme Document from King by contacting ir@king.com.

The Acquisition relates to the securities of an Irish company which is a "foreign private issuer" as defined under Rule 3b-4 under the Exchange Act and will be governed by the Irish Takeover Rules and Irish law. Neither the proxy solicitation rules nor the tender offer rules under the Exchange Act will apply to the Scheme of Arrangement pursuant to which the Acquisition is to be effected. The Scheme will be subject to the disclosure requirements and practices applicable in Ireland to schemes of arrangements, which differ from the disclosure requirements under the proxy solicitation and tender offer rules of the Exchange Act.

King is incorporated under the laws of Ireland . Some or all of the directors of King are resident in countries other than the United States . As a result, it may not be possible for U.S. holders of King Shares to effect service of process within the United States upon King or such directors of King or to enforce against any of them U.S. judgements predicated upon the civil liability provisions of the U.S. securities laws. It may not be possible to sue King or its officers or directors in a non-U.S. court for violations of U.S. securities laws.

Forward-looking statements

Statements in this Announcement that are not historical facts are forward-looking statements, including, but not limited to, statements about the expectations, assumptions, beliefs, plans, intentions or strategies of Activision Blizzard , King or their respective boards of directors, as the case may be, regarding the future, including, but not limited to, statements about the Acquisition described herein, benefits and synergies of the Acquisition, projections of revenues, gross bookings, expenses, income or loss, adjusted EBITDA or adjusted EBITDA margin, earnings or loss per share, cash flow or other financial items, future opportunities, anticipated business levels, future financial or operating performance, planned activities and objectives, including those related to product releases, anticipated growth, market opportunities, strategies, competition and other expectations, targets for future periods, and assumptions underlying such statements. These forward-looking statements may often be identified by the use of words such as "will", "may", "could", "should", "would", "to be", "might", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "future", "positioned", "potential", "intend", "continue", "remain", "scheduled", "outlook", "set to", "subject to", "upcoming", "target" and variations of these words or similar expressions. Forward-looking statements are subject to business and economic risk, reflect Activision Blizzard and/or King management's current expectations and estimates, and are inherently uncertain and difficult to predict. Actual future results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to: uncertainties as to the timing of the Acquisition; uncertainties as to whether Activision Blizzard will be able to consummate the Acquisition; uncertainties as to whether shareholders will provide the requisite approvals for the Acquisition on a timely basis or at all; the possibility that competing offers will be made; the possibility that certain conditions to the consummation of the Acquisition will not be satisfied, including without limitation obtaining the requisite approval of the Scheme of Arrangement at the Scheme Meeting; the possibility that Activision Blizzard will be unable to obtain regulatory approvals for the Acquisition on a timely basis or at all, or be required, as a condition to obtaining regulatory approvals, to accept conditions that could reduce the anticipated benefits of the Acquisition; the possibility that shareholders will file lawsuits challenging the Acquisition, including actions seeking to rescind the Scheme of Arrangement or enjoin the consummation of the Acquisition; the ability to meet expectations regarding the accounting and tax treatments of the Acquisition; changes in relevant tax and other laws or regulations; the integration of King being more difficult, time-consuming or costly than expected; the diversion of Activision Blizzard and/or King management time and attention to issues relating to the Acquisition and integration; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) being greater than expected following the Acquisition; the difficulty retaining certain key employees of King and Activision Blizzard following the Acquisition; the possibility that Activision Blizzard may be unable to achieve expected synergies and operating efficiencies in connection with the Acquisition within the expected time-frames or at all; the scope, timing and outcome of any ongoing legal proceedings involving Activision Blizzard or King and the impact of any such proceedings on financial condition, results of operations and/or cash flows of Activision Blizzard , King or the combined company; the possibility that costs, fees, expenses or charges Activision Blizzard and/or King incur in connection with the Acquisition 