A bird in hand and a hedgehog in the bush?
April 17, 2023
Sega is attempting to purchase Angry Birds maker Rovio for €706 million ($775 million), and hopes to use the Finnish studio's live service know-how to bring its own titles to mobile platforms.
The Japanese company has made a tender offer to acquire the entirety of Rovio's outstanding shares and options at €9.25 per share and €1.48 per option.
The move is what's known as a friendly takeover, with Rovio's board of directors having unanimously agreed to recommend that shareholders and option holders accept the offer.
According to Rovio, the offer represents a 19 percent increase on the closing price of €7.78 for Rovio shares on Nasdaq Helsinki on April 14, 2023, which was the last day of trading prior to the announcement.
At the time of writing, Moor Holding, which holds roughly 49.1 percent of outstanding shares and votes in the Finnish company, has "irrevocably" accepted the offer.
Sega believes the deal would strengthen its position within the mobile industry, and intends to "take-in Rovio's live-operated game development capabilities and expertize in mobile game operation" to develop "mobile-compatible" versions of existing franchises. Gaining access to Rovio's proprietary mobile development platform, Beacon, is another incentive.
The company has also indicated it will support Rovio's expansion outside of mobile gaming, which could include bringing its existing properties to new platforms.
Sega feels that investing in its game development and operating capabilities is "imperative," and claims Rovio–which has a sizeable presence in America and Europe–would allow it to expand its global footprint while also securing a "loved" multi-media brand in Angry Birds.
"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," said Sega Sammy president and group CEO, Haruki Satomi.
"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 echoed those remarks, and said the company is excited by the prospect of using its expertise and tools to enhance and expand both Rovio and Sega franchises.
Should it gain shareholder and regulatory approval, the acquisition is expected to close in the second quarter of FY2024.
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