Sega Sammy Considers $1B Acquisition of Angry Birds Maker

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The Japanese video game business Sega Sammy Holdings is considering purchasing Rovio Entertainment, the Finnish company behind the famous mobile game Angry Birds. According to the Wall Street Journal, the transaction might be worth $1 billion. Sega Sammy, on the other hand, has yet to make an official decision on the acquisition, and nothing has been agreed upon. Rovio Entertainment has said that it is in discussions with Sega Sammy about a possible tender offer.

Sega Sammy’s Announcement Drops Share Price

The video game company’s stock slumped 4.3% after Sega Sammy announced its interest in purchasing Rovio Entertainment. The comment made investors suspicious about the acquisition’s prospective advantages and synergies. The board of directors of Sega Sammy will meet on Monday to address the situation.

Potential Acquisition Benefits

Sega Sammy’s mobile gaming business is mostly focused on the domestic market, whereas Rovio’s Angry Birds is well-known internationally. Sega Sammy may be able to enhance its worldwide reach by acquiring Rovio Entertainment. According to Toyo Securities analyst Hideki Yasuda, the announcement would have been more warmly welcomed if Rovio had released fresh technology or had greater growth potential than Angry Birds.

Previously, Rovio received a takeover bid.

Rovio Entertainment received a purchase proposal of 683 million euros ($750 million) from Israeli rival Playtika Holding Corp. in January 2023. The discussions were, however, called off in March 2023. Sega Sammy Holdings is considering a strategic purchase of Rovio Entertainment as it investigates potential acquisition possibilities.

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