- Sega Sammy Holdings Inc has agreed to buy Finland’s Rovio Entertainment, the maker of the Angry Birds mobile game, for 706 million euros
- Tokyo-based Sega will offer 9.25 euros per share for Rovio, a 19% premium over Friday’s closing price of 7.775 euros.
Sega Sammy To Buy Rovio Entertainment
Sega Sammy Holdings Inc (TYO:6460) clearly believe there is life in the old birds yet, and are confident that there could be more eggs nesting at Rovio Entertainment Oyj (HEL:ROVIO) which are yet to hatch.
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Angry Birds flew onto the gaming scene 14 years ago, attracting swarms of mobile gamers who became obsessed with the catapult characters, including the then UK Prime Minister David Cameron.
But despite hitting the one billion download mark, spawning a trove of franchise goodies, including films, it has yet to fully capitalize on the growing trend for micro-transactions within games.
Rovio had been conducting a strategic review, making it ripe for the pickings of its bigger rivals. This is part of a bid by Sega to accelerate its position in the growing mobile gaming market. It’s already been adept at eking out fresh life for classic characters like Sonic the Hedgehog, so the Japanese firm is clearly hoping the acquisition of Rovio will catapult it into fresh franchise success.
Article by Susannah Streeter, head of money and markets, Hargreaves Lansdown
