Sega confirms €706m purchase of Angry Birds developer
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Sega Sammy Holdings Inc. buys the Finnish company Rovio Entertainment Oyj (the developer of Angry Birds) for 706 million euros. Each share will be redeemed for 9.25 euros per share, should from the official document.
The Board of Directors recommends that shareholders accept such an offer – it was supported by 49% of shareholders, including the Hed family, which founded Rovio.
The decision to merge the companies was made for Sega’s growth in the gaming market. Together with Rovio, the Japanese company plans to expand its fan base and host Rovio games across multiple platforms, the company said in a statement.
The deal will close in the second quarter of 2023-2024. Until then, Sega will need to obtain regulatory approval in order to comply with antitrust laws. Following Sega’s announcement, Rovio’s shares rose nearly 18% to €9.16 per share.
Finnish Rovio is known for the Angry Birds series of games. The first part of the series was the first game to reach a billion downloads. After the success of Angry Birds, the studio bought out smaller companies and developed other games, but this was not crowned with success.
“The sole purpose of the deal is simply to generate stable cash flow for Sega. Unfortunately, Rovio is unable to release new popular games,” commented Toyo Securities analyst Hideki Yasuda.
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