This would be a radically new type of gaming company targeting kids only. The company would launch several K12 casual games for mobile platforms, just like any other. But the business model would be different;
Instead of monetizing its games through advertising, in-app purchases, virtual currencies, or pseudo-gambling, this one would be **purely** free-to-play, but it would focus on creating iconic characters that it would eventually monetize via licensing.
So far, only few have been able to succeed with this model; with the most notable one being Angry Birds, Subway Surfers. But even Angry Birds is not purely free-to-play, the game features annoying ads and in-game purchases to unlock features: as mentioned in this BBC article.
There’s no doubt that the endeavor of creating such hit games would be massively expensive, risky; but with robust war-chest, one could create the Disney of tomorrow, because kids love the characters they interact with in their virtual worlds.
Last but not least, this could very well be a roll-up company too. In other words, with its massive cash warchest, it would acquire emerging casual gaming companies, strip off ads with this new “purely free-to-play” manifesto, invest in them to fuel their growth… And in the long run, profit!