Sega, the Japanese video games group, has announced that it is buying the maker of the hugely popular mobile game, Angry Birds, for a staggering $775 million. The acquisition of Rovio is part of Sega’s long-term goal to expand into the lucrative mobile gaming market. The deal values the Finnish company at over €700 million ($858 million) and is expected to be completed in the third quarter of this year.
Rovio, which employs over 500 people, saw revenue of €317.7 million ($389.9 million) in 2022 and an adjusted net profit of €31.4 million ($38.5 million). The company’s flagship game, Angry Birds, was launched in 2009 and quickly became one of the most popular games on Apple’s App Store. Rovio has also managed to expand its brand beyond mobile gaming, with Angry Birds theme parks in several countries and the publication of children’s books in a dozen languages.
Haruki Satomi, Sega’s CEO, stated that the acquisition of Rovio was part of the company’s long-term goal of expanding into the mobile gaming market. “The mobile gaming market has particularly high potential among the rapidly growing global gaming markets,” he added. The acquisition represents a 19% premium over Rovio’s Friday closing share price.
Rovio CEO Alexandre Pelletier-Normand expressed optimism about the company’s future following the acquisition. “The combination of Rovio and Sega’s strengths presents an incredibly exciting future,” he said in a statement.
Following Angry Birds’ global success, Rovio has struggled to create another hit game and has remained heavily reliant on its flagship title. In 2015, the company hit a rough patch and had to lay off one-third of its workforce. Rovio, on the other hand, has successfully expanded its brand beyond mobile gaming.
Sony Entertainment produced the Angry Birds film in 2016, which grossed $350 million worldwide. Rovio’s success has also allowed it to broaden its brand beyond gaming, with Angry Birds theme parks in a number of countries and the publication of children’s books in a number of languages.
Sega’s acquisition of Rovio is a significant step in the company’s expansion into the mobile gaming market. With the mobile gaming industry’s continued growth, it’s clear that companies like Sega are looking to capitalise on this trend and establish a stronger foothold in the marketplace, which could potentially pave the way for future acquisitions in the mobile gaming space.
Finally, Sega’s $775 million acquisition of Rovio is a significant step forward for the company as it seeks to expand into the mobile gaming market. Rovio’s success with Angry Birds has allowed the company to branch out beyond mobile gaming, with theme parks and children’s books in a number of countries. The deal represents a 19% premium over Rovio’s Friday closing share price and is expected to close in the third quarter of this year.
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