Apr 17, 2023

Sega Agrees to Acquire "Angry Birds" Developer Rovio Entertainment for $706 Million

Video game developer Sega Sammy Holdings announced its intention to acquire Rovio Entertainment, developer and rights holder of "Angry Birds," for €706 million ($776 million).

About Rovio- Rovio is a game developer and has built a worldwide franchise with its mobile game "Angry Birds". It has several animated series and two feature films. The company is headquartered in Espoo, Finland. [Sega will acquire Rovio for €706 million ($776 million), subject to approval by Rovio's board of directors, as announced on Monday, April 17. The acquisition is subject to regulatory approval and is expected to close between July and September.

Background As explained in February, the video game industry is going through a period of consolidation, as indicated by record mergers and acquisitions. According to video game agency Digital Development Management, 2022 was the second-largest year on record for video game investments, mergers, and acquisitions, at $51.5 billion. This year could be even bigger if Microsoft's $68.7 billion acquisition of gaming giant Activision Blizzard is approved. The acquisition would bring the total to $74.5 billion in 2023, up from the $74.5 billion recorded in 2021. Compared to the Microsoft and Activision acquisitions, the Rovio acquisition may seem like birdseed, but it is certainly important to all involved and represents an even bigger trend. [Sega's reasons for acquiring Rovio - for one thing, acquiring the Finnish company will add one of the biggest mobile game titles ever to its catalog. But perhaps more importantly, Sega's goal is to incorporate Rovio's live-operated mobile game development capabilities and mobile game management expertise as a means of accelerating the development of mobile-ready and multiplatform versions of existing Sega IP. Interestingly, this news comes on the heels of Nintendo's Shigeru Miyamoto's announcement that the company's largest franchise, Super Mario Bros.

, is the reason why Sega wants to get more involved in mobile gaming. According to Microsoft, the Activision Blizzard deal is more about getting King, the developer of Candy Crush, than it is about getting Call of Duty or Overwatch. Mobile games were also the main motivation for Savvy's $4.9 billion acquisition of mobile gaming giant Scopely and Take-Two's $12.7 billion acquisition of Farmville developer Zynga.

Their comments Harunori Satomi, President and Group CEO of Sega Sammy, stated:

Among the fast-growing global gaming markets, the mobile gaming market has particularly high potential, and it has been Sega's long-term goal to accelerate business expansion in this field. We are happy to announce this deal with Rovio, whose "Angry Birds" is loved around the world and whose many talented employees support our industry-leading mobile game development and management capabilities. Sega has historically released numerous game titles on a variety of gaming platforms, as exemplified by the "Sonic the Hedgehog" series. We are confident that the combination of both companies' brands, characters, fan bases, and corporate culture and functionality will create significant synergies going forward. [Rovio CEO Alexandre Pelletier-Normand added: "We are very pleased to be working with Rovio.

Joining Rovio is an honor and we are proud to have seen Angry Birds continue to grow as we release new games, series and movies. Less well known, but equally impressive, is Beacon, a proprietary, industry-leading technology platform with 20 years of expertise that allows the tight-knit team to develop world-class GaaS products. Our mission is to "create joy" and we are excited to use our expertise and tools to bring even more joy to our players and enhance and expand Rovio and Sega's vibrant IP.