The fast-growing video game company Sega has made a major acquisition — it has reportedly agreed to a hefty buyout of video game creator Rovio — the developer behind the popular mobile game “Angry Birds”. According to a new report, Sega is shelling out $1 billion for Rovio, showing confidence in its potential to become an even bigger force in the gaming industry.
1. Sega Acquires ‘Angry Birds’ Developer Rovio for $1 Billion
On March 8th 2021, iconic gaming company Sega has entered a deal to acquire Rovio Entertainment Oy. Rovio is the creator of the popular ‘Angry Birds’ franchise and other popular video game titles like ‘Merge Dragons’ and ‘Old School RuneScape’. The deal cost Sega $1 Billion.
Rovio’s portfolio has been on growth trajectory over the past few years. The company had over 430 million monthly active users estimated in February 2021 and had total sales of $338 million in 2020. This acquisition brings Sega’s total capitalization to $3.2 billion.
- This deal marks New Horizon Acquisition Corporation’s second major move since it went public in May 2020.
- Sega stated that the new acquisition will help launch new services and build an “ecosystem” of entertainment.
- The company is now a key player in the video game industry, with a portfolio of beloved gaming franchises.
2. Details of the Acquisition
XYZ Corp has officially announced their plan to acquire ABC Corp. ABC Corp brings a wealth of potential opportunities to the table and promises exciting prospects for the newly formed partnership. Here are the highlights of the acquisition:
Financial Aspects
- XYZ Corp has paid ABC Corp a total of $457 million from a combination of cash and stock.
- The acquisition is expected to close by the end of the current quarter.
- Stockholders will receive a total of $14.75 per share.
Anticipated Synergies and Benefits
- XYZ Corp is looking to benefit from ABC Corp’s extensive product suite.
- The acquisition will improve XYZ Corp’s supply chain and allow for more efficient logistics.
- It has been estimated that the combination of the two companies will yield an annual pre-tax saving of up to $76 million.
3. The Benefits of the Acquisition for Sega
The acquisition of the Atlus brand marks a major positive development for Sega as they gain a major new asset in their portfolio. There are many benefits to be gained from this acquisition, which can be divided into two major categories:
- Increased Reach
- Expansion of Genres and Capabilities
Firstly, Sega’s acquisition of the Atlus brand increases their reach in terms of geographical presence and player base. By gaining the properties of the Atlus brand, Sega has the ability to penetrate new regions and expand their reach beyond their current capabilities. Additionally, the acquirement also allows for an increase in the scope of Sega’s gaming audience due to the wide range of genres represented by the Atlus brand.
Secondly, the acquisition of the Atlus brand gives Sega the opportunity to explore an expanded library of gaming genres that could potentially be funded or published by Sega. The establishment of the Atlus brand allows Sega to transition from their current genre of games to fantasy, horror and even music games, thus expanding their overall capabilities as a gaming leader in the industry.
4. Future Prospects for Rovio post-Acquisition
With the recent acquisition of Rovio, the prospects for the company in the future look very promising. Here are some of the potential opportunities that Rovio might have in store for the industry:
- Expanding Market Share: Rovio could use its new acquisition to expand its presence in other areas, such as e-commerce, gaming platforms, and even in other industries like entertainment and advertising.
- Improving User Experience: By using its resources, Rovio could focus on user experience, making improvements in its products, such as gaming platforms, to make them more enjoyable for users.
- Creating New Products: With its new resources, Rovio could create new products, such as mobile games, that would be more engaging and appealing to people of all ages.
Overall, the future looks bright for the company. With its recent acquisition, Rovio could leverage its resources to enter new markets and create new products, allowing it to stay competitive and continue to grow. Moreover, it could also focus on improving user experience in its existing platforms, increasing the satisfaction of existing users.
The acquisition of “Angry Birds” developer Rovio by Sega comes at a time when the video game industry is growing at an exponential rate. With this latest report of a $1 billion purchase of Rovio, Sega is making a significant move towards cementing its presence within the world of interactive entertainment. It remains to be seen what unique vision Sega and Rovio bring to the industry, but with their combined histories and resources, it’s sure to be an interesting journey.
