Sega to Acquire Angry Birds Developer Rovio for $1 Billion: Report
Japan’s Sega Sammy Holdings Inc said on Monday it was considering acquiring Finland’s Rovio Entertainment Oyj but nothing had been decided yet, sending its shares lower amid investor doubts about the prospects for synergy. The Wall Street Journal reported last week that Sega Sammy was set to strike a deal to buy the Finnish company behind mobile game Angry Birds for around $1 billion (around Rs. 8,200 crore). Rovio said it was in talks with Sega Sammy about a potential takeover bid.
“No formal decision has been made in this regard at this time, while it is true that we are considering such a strategic option,” Sega Sammy said in a statement. The issue will be discussed at a board meeting on Monday, added Sega Sammy, which offers the iconic “Sonic the Hedgehog” action game series.
Shares of Sega Sammy fell 4.3% at midday in a broader market that was virtually unchanged.
“Sega Sammy’s mobile games business is focused on the domestic market, while ‘Angry Birds’ is well known overseas. The acquisition would facilitate Sega Sammy’s growth globally,” Hideki said. Yasuda, an analyst at Toyo Securities. “But there hasn’t been a big hit (from Rovio) other than Angry Birds, which was originally launched over 10 years ago. The news would have been received more positively if the investors had seen new technologies or more growth potential,” Yasuda said.
Rovio received a 683 million euro ($750 million) takeover bid in January from Israeli counterpart Playtika Holding Corp, but talks were called off last month. Finland-based Rovio launched Angry Birds in 2009 on mobile platforms and has developed many other games since its inception in 2003, but none have enjoyed the kind of success the Angry Birds franchise has enjoyed. The series also led to various additional properties, including movies, TV series, and merchandise.
© Thomson Reuters 2023
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