Sega acquires Angry Birds' creator Rovio for US$774m

Video game company Sega Corporation, a subsidiary of Sega Sammy, has acquired Angry Birds' creator Rovio Entertainment Oyj for a tender offer of EUR 706 million (approximately US$774 million).

Rovio is a global mobile-first, games company that creates, develops and publishes mobile games. Sega aims to accelerate its growth in the global gaming market and increase its corporate value by generating synergies between Sega's existing businesses and Rovio’s strengths, including its global IPs and live-operated mobile game development capabilities. 

The acquisition, which the statement to the press says is a friendly one, is expected to close in the second quarter of financial year 2024 and is contingent on the completion of reviews under applicable antitrust laws and other customary conditions.

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Through the acquisition, the company aims to take in Rovio’s live-operated mobile game development capabilities and expertise in mobile game operation, to accelerate the development of mobile-compatible and multi-platform-supported version of Sega's existing game IPs, thereby strengthening and further accelerating global expansion of Sega’s game portfolio.

The size of the global gaming market is projected to reach US$263.3 billion by 2026, growing at a CAGR of 3.5% from 2022 to 2026. The mobile gaming market in particular, is set to grow at a CAGR of 5.0% to represent 56% of the global gaming market overall, an increase from 53% in 2022. 

The company firmly believes that it is imperative to continue investing in its game development and operating capabilities, in order to further strengthen its position in this fast-growing mobile and global gaming market, which therefore led to the decision to acquire Rovio.

Haruki Satomi, president and group CEO, representative director of Sega Sammy, said that 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. "I feel blessed to be able to announce such a transaction with Rovio, a company that owns Angry Birds, which is loved across the world, and home to many skilled employees that support the company’s industry leading mobile game development and operating capabilities," he added.

Satomi also said that historically, as represented by the “Sonic the Hedgehog” series, Sega has released countless video game titles to various gaming platforms. "I am confident that, through combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward," he explained.

Alexandre Pelletier-Normand, CEO of Rovio, said:

I grew up playing Sonic the Hedgehog, captivated by its state-of-the-art design. Later, when I played Angry Birds for the first time, I knew that gaming had evolved into a true mainstream phenomenon, with the power to shape modern culture.

He said that joining Rovio has been an honour and he is proud to have seen Angry Birds continue to grow, as Rovio released new games, series and films. "Less known but equally impressive is our industry-leading proprietary technology platform, Beacon, holding 20 years of expertise, allowing tight-knit teams to develop world-class GaaS products," he added. 

Rovio's mission is to ‘Craft Joy’ and the company is thrilled at the idea of using its expertise and tools to bring even more joy to its players, enhancing and expanding Rovio’s and Sega's vibrant IPs, he said. "Red and Sonic the Hedgehog are two globally recognised and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC, and beyond. Combining the strengths of Rovio and Sega presents an incredibly exciting future."

MARKETING-INTERACTIVE has reached out for more information.

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