Sega, the Japanese video game giant behind Sonic the Hedgehog and other popular franchises, has announced that it has completed its acquisition of Rovio Entertainment, the Finnish developer of Angry Birds. The deal, which was first reported in April, is worth 706 million euros (about $776 million) and marks Sega’s entry into the global mobile gaming market.
Sega Expands Its Mobile Gaming Portfolio with Angry Birds
Sega is best known for its console and arcade games, such as Sonic the Hedgehog, Yakuza, Persona, and Shenmue. However, the company has also been exploring new opportunities in the mobile gaming sector, which is expected to grow to $272 billion by 2030. Sega already has some successful mobile titles, such as Sonic Dash, Sonic Forces, and Sega Heroes, but the acquisition of Rovio gives it access to one of the most popular and profitable mobile franchises in history: Angry Birds.
Angry Birds was launched in 2009 by Rovio and quickly became a global phenomenon. The game, which involves slinging birds at pigs using a catapult, has been downloaded over five billion times and has spawned numerous sequels, spin-offs, merchandise, movies, and even theme parks. According to Rovio’s financial report for 2022, Angry Birds generated 271.8 million euros ($299.4 million) in revenue and 36.5 million euros ($40.2 million) in operating profit.
By acquiring Rovio, Sega hopes to leverage the Angry Birds brand and fan base to expand its presence and influence in the mobile gaming market. Sega also plans to create new games and experiences based on Angry Birds, as well as collaborate with Rovio on cross-promotion and cross-development opportunities.
Rovio Joins Sega Group as a Subsidiary
Rovio will become a part of Sega Group, which is a subsidiary of Sega Sammy Holdings. Sega Sammy Holdings is a Japanese holding company that owns various businesses related to entertainment, such as video games, pachinko machines, animation, toys, and resorts. Sega Group is responsible for the video game division of Sega Sammy Holdings and includes other studios such as Atlus, Creative Assembly, Relic Entertainment, and Amplitude Studios.
Rovio will operate as an independent entity within Sega Group and will retain its own brand identity and corporate culture. Rovio’s headquarters will remain in Espoo, Finland, and its current CEO Alex Pelletier-Normand will continue to lead the company. Rovio’s shareholders have agreed to sell their shares to Sega for 9.5 euros ($10.5) per share, which represents a 28% premium over Rovio’s closing price on April 16, the day before the takeover talks were revealed.
Rovio’s board of directors has unanimously recommended that its shareholders accept Sega’s offer. The board stated that the deal “represents a fair valuation of Rovio” and that it “creates significant value for Rovio’s shareholders”. The board also expressed its confidence that “Sega is an excellent partner for Rovio” and that “the combination of the two companies will benefit both parties”.
Fans React to Sega’s Acquisition of Rovio
The news of Sega’s acquisition of Rovio has been met with mixed reactions from fans of both companies. Some fans are excited about the potential collaborations between Sega and Rovio, such as crossover games featuring Sonic and Angry Birds characters. Others are skeptical about how Sega will manage Rovio’s IP and whether it will respect its original vision and quality standards.
Some fans have also expressed concern about Rovio’s recent decision to remove Angry Birds (now titled Rovio Classics: Angry Birds) from the Google Play Store. Rovio explained that the game had a negative impact on the rest of its games portfolio and urged its fans to support its other titles, such as Angry Birds 2, Angry Birds Friends, and Angry Birds Journey. However, some fans felt that this move was disrespectful to the game that started it all and wondered if Sega had any influence on it.
Regardless of how fans feel about the acquisition, it is clear that Sega and Rovio are two of the most influential players in the video game industry. Together, they have a combined history of over 70 years and a portfolio of over 100 games. With their combined resources, talent, and creativity, they have the potential to create new and exciting experiences for gamers around the world.
