Sega Sammy Holdings, the Japanese entertainment conglomerate, is considering the acquisition of Rovio Entertainment, the Finnish mobile game developer responsible for the iconic game Angry Birds. Although the acquisition has not yet been finalized, The Wall Street Journal reported last week that Sega Sammy was nearing a deal to buy Rovio for approximately $1 billion.
Rovio has confirmed that it is in talks with Sega Sammy over a potential tender offer. The matter will be discussed during a board of directors meeting that has been scheduled to take place soon. Sega Sammy’s mobile gaming business is centered on the domestic market while Angry Birds is well-known overseas. The acquisition could aid in global growth for Sega Sammy.
However, news of the potential acquisition resulted in a 4.3% drop in Sega Sammy’s shares by midday. Investors are doubtful about the synergy prospects of the acquisition. Analyst Hideki Yasuda believes that the acquisition would make it easier for Sega Sammy to grow globally. However, investors are looking for newer technologies or more growth potential as Angry Birds was launched over 10 years ago.
Rovio’s portfolio includes other popular games such as Bad Piggies and Angry Birds Epic. Founded in 2003, Rovio has since become one of the most well-known mobile game developers in the world. Sega Sammy is the parent company of Sega, which is known for the iconic action game series Sonic the Hedgehog. Sega Sammy has been expanding its gaming business in recent years, particularly in the esports and mobile gaming sectors.
The potential acquisition of Rovio by Sega Sammy is a reflection of the growing consolidation in the gaming industry. In January, Rovio received a 683 million euro takeover bid from Playtika Holding Corp, an Israeli peer. However, the talks were called off last month. As the gaming industry continues to grow and evolve, it is likely that more acquisitions and mergers will take place in the future.
For the latest tech news, follow Techbar Nepal on Facebook, and Instagram.
For Digital Products and Services: Maurisys Software.
