Sega offers €706 million to Acquire Angry Birds Creator Rovio Entertainment

Sega, the renowned Japanese gaming company, has recently offered €706 million ($776 million) to acquire Rovio Entertainment Oyj, the creator of the popular Angry Birds puzzle game. The deal covers all of Rovio’s outstanding shares and options, with stocks valued at €9.25 per share and options at €1.48. Rovio’s board has expressed support for the acquisition.

Rovio has established a global brand with its Angry Birds franchise, which has been licenced for usage in various consumer goods and entertainment, with over 5 billion game downloads. With this acquisition, Sega, known for its Sonic the Hedgehog and Total War game series as well as platforms like the Sega Genesis and Mega Drive, hopes to increase its market share in the lucrative mobile gaming industry. To create mobile versions of its current games, the business wants to make use of Rovio’s experience in live-operated mobile game creation.

Sega Plans to Buy Rovio Entertainment for €706 million

The Wall Street Journal previously estimated the Rovio deal would be worth $1 billion. Shares in Rovio were up 17.8% following the announcement, while shares in Sega Sammy, the holding company of Sega, fell 4.2% before the acquisition was made public.

According to Haruki Satomi, Sega Sammy’s Group CEO, “the mobile gaming market has especially high potential, and it has been SEGA’s long-term goal to accelerate its expansion in this field.” He expressed confidence that combining the brands, characters, and fanbases of both companies would create significant synergies going forward.

The CEO of Rovio, Alexandre Pelletier-Normand, highlighted the complementary nature of the two businesses and the iconic stature of Red from Angry Birds and Sonic the Hedgehog, respectively. He mentioned how both companies have a global presence across platforms, including mobile, PC/console, and others.

Check out? Sega Nears Deal to Acquire Angry Birds Maker Rovio for $1 billion