The video game industry is constantly growing and evolving. In this context, large companies seek to expand their reach through strategic acquisitions. Sega Sammy Holdings, the Japanese company behind the popular Sonic the Hedgehog franchise, has bought Rovio Entertainment, creator of the hit game Angry Birds.
Sega’s interest in Rovio
Rovio Entertainment, a Finnish company founded in 2003, achieved great recognition in the video game industry thanks to the release of Angry Birds in 2009. This mobile game reached an impressive 1 billion downloads and spawned multiple versions and spin-offs. , as well as two movies. However, despite these achievements, Rovio has not managed to develop another game that reaches the same level of popularity.
Sega Sammy Holdings is the result of the merger in 2004 between Sega, one of the most important companies in the video game industry, and Sammy Corporation, dedicated to the development and sale of arcade machines. The Japanese company has created very successful video game franchises, being Sonic the Hedgehog one of the most recognized worldwide. In its search to expand and stay relevant in the market, Sega showed interest in acquiring Rovio, and has already confirmed the purchase for 776 million.
The Wall Street Journal reported that Sega Sammy Holdings’ possible acquisition of Rovio Entertainment could be worth close to $1 billion. At the end of trading last Friday, Rovio’s market valuation was approximately $707 million. In the end, the purchase was made for 706.
After the talks between the two companies were disclosed, Sega Sammy’s shares suffered a 3% drop on the Tokyo stock market.
Sega could take advantage of the success of the Angry Birds franchise to expand its portfolio of games and reach a larger audience in the mobile gaming industry. For its part, Rovio could benefit from Sega’s financial support and experience to develop new titles that allow it to diversify its offer and stay in the competition.
This acquisition highlights the importance of strategic alliances and mergers in the video game industry. Companies must be attentive to business opportunities that allow them to stay ahead in a highly competitive market.