SEGA in Talks to Acquire Rovio Entertainment, Makers of Angry Birds, for $1 Billion
Update: Rovio confirms that it is in discussions with SEGA for acquisition;
On February 6, 2023, Rovio Entertainment Corporation (“Rovio”) announced the commencement of a strategic review and preliminary non-binding discussions with certain parties in relation to a potential tender offer for Rovio’s shares.
With reference to recent information in the media, Rovio confirms that it is in discussions with Sega Sammy Holdings Inc. (“Sega”) regarding a possible tender offer for Rovio’s shares. Rovio and Sega will release further information at an appropriate time. There is no certainty as to when the possible tender offer would take place or whether it would take place at all, nor as to the terms of such potential tender offer.
Rovio does not comment on valuation estimates presented in the media due to the ongoing discussions and there can be no assurance that such estimates would reflect the outcome of the discussions.”
Rovio Entertainment Corporation
Original Story
Sega Sammy Holdings Inc., the well-known Japanese entertainment conglomerate recognized for its beloved character Sonic the Hedgehog, is reportedly in discussions to acquire Rovio Entertainment Oyj, the company behind the highly popular mobile game “Angry Birds,” for a staggering sum of approximately $1 billion, as revealed by sources familiar with the matter. If successful, the deal could be completed as early as next week, pending successful negotiations.
Angry Birds, which was launched in 2009 during the early days of smartphones, was a groundbreaking mobile game that quickly became a global sensation. Players use a slingshot to propel birds through various obstacles to defeat green pigs attempting to steal their eggs.
Rovio proudly claimed that Angry Birds was the very first mobile game to surpass 1 billion downloads, and since then, the game has accumulated an astounding total of 5 billion downloads across its extensive games catalog.
Rovio has attempted to capitalize on the success of Angry Birds by launching sequels, TV spin-offs, and even movies. However, the company has struggled to replicate the same level of success with its subsequent games.
Notably, Rovio had previously been in talks to sell itself to an Israel-based competitor, Playtika Holding Corp., for a reported sum of over $800 million. However, those negotiations fell through in March without reaching a final deal.
As Sega Sammy Holdings Inc. looks to potentially acquire Rovio Entertainment Oyj, the outcome of the negotiations will be closely watched by the gaming industry, which continues to experience shifts and consolidation amidst changing consumer preferences and market dynamics.
Source: WSJ
