Sega has officially announced its plans to purchase Rovio Entertainment, the studio house behind Angry Birds, for $776 million USD (around $1.03 billion CAD).
Revealed via filings posted online by the Japanese publisher, Sega’s acquisition will be for the entirety of Rovio Entertainment, alongside outstanding shares and options. Rovio Entertainment is a Finnish development studio and sees stock valuation rise more than 50 percent this year. It currently sits at around 9.16 euros ($13.44) per share. Sega’s offer values share pricing at around 9.25 euros, a 19 percent premium.
Rovio Entertainment became a widely known name due to the surge in popularity of the Angry Birds IP. Since launching in 2009, Angry Birds and its many spinoffs, movies, etc. have become a global phenomenon. The first game was the first mobile series to reach 1 billion installs. However, Rovio’s games have been downloaded more than 5 billion times, according to the statement.
“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,” Haruki Satomi, President and Group CEO, Representative Director of Sega says in a statement.
In the filings, Sega claims that the deal will allow Sega to reach new markets, especially within the mobile sector. Ideally, Rovio’s knowledge will assist “Sega’s current and new titles to the global mobile gaming market.” Additionally, Sega is aiming to rapidly expand the fanbase of both companies via transmedia.
Finally, Sega envisions a cross-platform future of Rovio’s IP using Sega’s capabilities. This may lead to the Angry Birds franchise migrating from mobile to console and PC. “Rovio is aiming to expand its platform outside of mobile gaming, and SEGA will actively look to support this process through its capabilities.”
Rovio CEO Alexandre Pelletier-Normand says, “Red and Sonic the Hedgehog: two globally recognized and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC/console, and beyond.” He continues, “Combining the strengths of Rovio and SEGA presents an incredibly exciting future.”
