Topline
Gaming giant Sega, best known for its Sonic the Hedgehog character, has offered to buy Angry Birds maker Rovio Entertainment, both companies announced on Monday, days after takeover talks were first revealed as the Japanese firm doubles down on efforts to expand into the mobile gaming market.
Sega has offered to buy Angry Birds studio Rovio.
Key Facts
Tokyo-based Sega Sammy Holdings has offered €706 million ($776 million) to acquire Finland’s Rovio Entertainment, the companies said in a joint statement.
The deal covers all of Rovio’s outstanding shares and options and values stocks at €9.25 per share and options at €1.48 per option.
The offer is roughly a 19% premium over the company’s closing price on Friday.
Rovio’s board unanimously endorses the offer and the deal is backed by 49% of shareholders, the companies added.
In a statement, the Japanese giant said it plans to use Rovio’s “distinctive know-how in live service mobile game operation, to bring Sega’s current and new titles to the global mobile gaming market.”
The deal is subject to shareholder and regulatory approval.
Tangent
Rovio shares in Helsinki were up nearly 18% during trading Monday morning.
What To Watch For
Sega wants to use Rovio’s experience in mobile gaming to expand its own footprint in the sector. “Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been Sega’s long-term goal to accelerate its expansion in this field,” explained Haruki Satomi, president and chief executive of Sega Sammy. Some of the company’s best known titles include Sonic the Hedgehog, Yakuza and Crazy Taxi.
News Peg
Confirmation of the potential acquisition comes just days after the Wall Street Journal revealed takeover talks were underway. Sega confirmed the talks but said “no formal decision” had been made. Earlier this year, Rovio was in talks with Israeli rival Playtika Holding for a deal reportedly worth more than $800 million. It’s not clear why this offer was rejected. The Finnish developer has relied heavily on the stellar successes of its Angry Birds game franchise, which was a hit in the late 2000s and early 2010s and is the centerpiece of Rovio’s business. The game, which was the first mobile game to reach 1 billion downloads, has also spun off several movies and theme parks though Rovio has failed to replicate its success.
Further Reading
Sega Nears Deal for ‘Angry Birds’ Mobile Game Maker (WSJ)
Source: https://www.forbes.com/sites/roberthart/2023/04/17/sega-targets-angry-birds-maker-rovio-for-takeover/