In a game-changing move in the gaming industry, SEGA, the iconic video game publisher, has announced its acquisition of Rovio Entertainment, the Finnish studio behind the globally popular mobile game, Angry Birds, in a deal worth $771 million. The acquisition is SEGA’s most expensive to date, and it marks the company’s move to accelerate its growth in the global gaming market and expand its reach beyond mobile gaming.
Rovio Entertainment: A Leader in Mobile Gaming
Rovio Entertainment is an established leader in the mobile gaming market, with the iconic Angry Birds franchise as its flagship product. The game has become a cultural phenomenon since its first release in 2009, spawning countless titles, merchandise, and even its own movie. In 2022, Rovio reported an operating profit of almost $40 million, making it a highly lucrative acquisition for SEGA.
SEGA’s Motive for the Acquisition
SEGA’s motive for acquiring Rovio Entertainment is twofold. Firstly, SEGA aims to accelerate its growth in the global gaming market by generating synergies between its existing businesses and Rovio’s strengths. Secondly, SEGA plans to expand Rovio’s influence outside of mobile gaming. With its expertise in console and PC gaming, SEGA aims to leverage Rovio’s brand recognition and user base to create new opportunities in these areas.
Friendly Takeover by SEGA
The agreement will see SEGA acquire all outstanding shares of Rovio, effectively turning it into a wholly-owned subsidiary of SEGA. The move is described as a “friendly takeover,” with Rovio’s board of directors fully supporting the acquisition. SEGA’s extensive experience and resources in the gaming industry, combined with Rovio’s brand recognition and expertise in mobile gaming, create a strong synergy that is expected to bring about exciting new opportunities for both companies.
SEGA’s CEO on the Acquisition
SEGA’s CEO Haruki Satomi expressed his excitement about the deal, saying: “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.”
The Future of Rovio Entertainment Under SEGA
With the acquisition expected to close in the second quarter of FY2024/3, the future of Rovio Entertainment under SEGA’s ownership looks promising. Rovio’s current leadership team will continue to lead the studio, with SEGA providing additional resources and support. SEGA aims to help Rovio expand its reach and explore new opportunities in console and PC gaming while continuing to dominate the mobile gaming market.
FAQs
What is Rovio Entertainment?
Rovio Entertainment is a Finnish studio best known for creating the Angry Birds franchise, a globally popular mobile game.
What is SEGA?
SEGA is an iconic video game publisher with a long history in the gaming industry, known for classic titles such as Sonic the Hedgehog.
How much did SEGA acquire Rovio Entertainment for?
SEGA acquired Rovio Entertainment in a deal worth $771 million.
What is SEGA’s motive for acquiring Rovio Entertainment?
SEGA aims to accelerate its growth in the global gaming market and expand Rovio’s influence outside of mobile gaming.
What is the future of Rovio Entertainment under SEGA’s ownership?
The future of Rovio Entertainment under SEGA’s ownership looks promising, with the acquisition expected to bring about exciting new opportunities for both companies.
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