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Business News/ Technology / News/  Japanese gaming giant Sega to acquire Angry Birds maker Rovio in $776 million deal
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Japanese gaming giant Sega to acquire Angry Birds maker Rovio in $776 million deal

Rovio, maker of the popular mobile game Angry Bird, will be acquired by Japanese gaming giant Sega in a $776 million deal.

FILE PHOTO: Angry Birds game characters are seen at the Rovio headquarters in Espoo, Finland March 13, 2019. Picture taken March 13, 2019. REUTERS/Anne Kauranen/File Photo (REUTERS)Premium
FILE PHOTO: Angry Birds game characters are seen at the Rovio headquarters in Espoo, Finland March 13, 2019. Picture taken March 13, 2019. REUTERS/Anne Kauranen/File Photo (REUTERS)

Japanese gaming giant Sega Sammy Holdings Inc. has announced plans to acquire the creator of the popular mobile game Angry Birds - Rovio Entertainment - in a deal worth $776 million. The deal values each Rovio share at 9.25 euros, a 19% premium to Rovio's Friday closing price. 

Sega Sammy will launch its tender offer bid on May 8 and the deal is expected to be closed in the next couple of months subject to some ‘customary conditions’.

According to news agency Reuters, Rovio's shares saw a significant surge, going up 18.8% in early European trade following the announcement. However, Sega Sammy's shares declined by 4.2% the day prior to the tender offer announcement, after the company revealed its plans to acquire Rovio.

Also Read: Angry Birds Classic to fly away from Google Play Store, to get a new avatar

Sega Sammy Holdings President and CEO Haruki Satomi, while speaking about the acquisition in a statement said, “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."

Rovio CEO Alexandre Pelletier-Normand in a statement about the takeover said “Our mission is to ‘Craft Joy’ and we are thrilled at the idea of using our expertise and tools to bring even more joy to our players, enhancing and expanding Rovio’s and Sega’s vibrant IPs"

Earlier this year, Rovio received a takeover offer from the Israeli Playtika Holding Corp, which valued the company at 683 million euros. However, in March, Playtika announced that the discussions regarding the takeover had ended.

Also Read: Jio Games Store set to get titles from Japanese gaming giant SEGA

Launched in 2009, Angry Birds quickly became a global phenomenon. But the franchise started to lose momentum by 2014. The popular game also set a world record by becoming the first mobile game to be downloaded 1 billion times.

Despite mixed reviews from critics, the first Angry Birds movie released in 2016 was a huge commercial success, grossing over $350 million worldwide. However, the second movie failed to replicate the success of its predecessor.

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Published: 18 Apr 2023, 12:20 AM IST
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