Sega nears $1 billion deal to acquire Angry Birds creator Rovio Entertainment: Report
This news follows a preliminary bid made by Israeli company Playtika in January of this year, to purchase Rovio for $750.96 million, but the deal ultimately fell through
- Apr 15, 2023,
- Updated Apr 15, 2023 5:01 PM IST
Japan's Sega is closing in on a deal to acquire Rovio Entertainment, the Finnish company that created the popular Angry Birds mobile game franchise, for approximately $1 billion, according to a recent report by the Wall Street Journal. The report cites sources who are familiar with the matter and suggests that the acquisition could be completed by early next week.
This news follows a preliminary bid made by Israeli company Playtika in January of this year, to purchase Rovio for $750.96 million, but the deal ultimately fell through. While the reported $1 billion price tag is a significant amount, it is surprising that Sega would be willing to invest so much given the current decline in the popularity of the Angry Birds games. The franchise had a peak in 2014 but has since suffered from declining profits and layoffs.
Rovio has even attempted to expand beyond the game franchise with a movie adaptation in 2016, 'The Angry Birds Movie', which turned out to be a box-office success despite receiving mixed reviews. However, the sequel in 2019, 'The Angry Birds Movie 2', failed to replicate the same level of success. Competitors such as Candy Crush have also continued to grow in popularity, leading to a further decline in interest in the Angry Birds franchise.
Despite this, Sega may still see potential in Rovio, which has a well-known brand and a strong track record in mobile gaming. Sega has been actively seeking acquisitions recently, with a focus on expanding its gaming portfolio. The acquisition of Rovio could be a strategic move for Sega, allowing it to expand its presence in the mobile gaming market and potentially revitalise the Angry Birds franchise.
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Japan's Sega is closing in on a deal to acquire Rovio Entertainment, the Finnish company that created the popular Angry Birds mobile game franchise, for approximately $1 billion, according to a recent report by the Wall Street Journal. The report cites sources who are familiar with the matter and suggests that the acquisition could be completed by early next week.
This news follows a preliminary bid made by Israeli company Playtika in January of this year, to purchase Rovio for $750.96 million, but the deal ultimately fell through. While the reported $1 billion price tag is a significant amount, it is surprising that Sega would be willing to invest so much given the current decline in the popularity of the Angry Birds games. The franchise had a peak in 2014 but has since suffered from declining profits and layoffs.
Rovio has even attempted to expand beyond the game franchise with a movie adaptation in 2016, 'The Angry Birds Movie', which turned out to be a box-office success despite receiving mixed reviews. However, the sequel in 2019, 'The Angry Birds Movie 2', failed to replicate the same level of success. Competitors such as Candy Crush have also continued to grow in popularity, leading to a further decline in interest in the Angry Birds franchise.
Despite this, Sega may still see potential in Rovio, which has a well-known brand and a strong track record in mobile gaming. Sega has been actively seeking acquisitions recently, with a focus on expanding its gaming portfolio. The acquisition of Rovio could be a strategic move for Sega, allowing it to expand its presence in the mobile gaming market and potentially revitalise the Angry Birds franchise.
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For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine