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[ManaByte]

Sega nears deal to acquire Angry Birds maker Rovio for $1 billion, Wall Street Journal reports

Japan's Sega Sammy Holdings Inc is nearing a deal to acquire Rovio Entertainment , the company behind the 'Angry Birds' mobile game, for about $1 billion, the Wall Street Journal reported on Friday.

www.reuters.com

April 14 (Reuters) - Japan's Sega Sammy Holdings Inc (6460.T) is nearing a deal to acquire Rovio Entertainment (ROVIO.HE), the company behind the 'Angry Birds' mobile game, for about $1 billion, the Wall Street Journal reported on Friday.

Tokyo-based Sega could finalize the deal to complete the acquisition of Rovio by early next week, the report said citing people familiar with the matter.

 

[DaGwaphics]

I having they done anything besides Angry Birds?

 

[SEGA_2012]

Angry birds plush coming to Yakuza's UFO catcher

 

[ricardo_sousa11]

What a waste of 1B$

But I guess thats Sega

 

[Puscifer]

I can't think of a dumber waste of money in my life

 

[ManaByte]

I having they done anything besides Angry Birds?

Some mobile crap no one ever heard of.

 

[RoboFu]

Angry birds has made much more money on merchandise and licensing than they ever did with the actual game. So maybe sega has a plan for that.

 

[VulcanRaven]

But I thought Microsoft was buying Sega.

 

[Punished Miku]

Interesting.

 

[mansoor1980]

microsoft should sue them

 

[envyzeal]

Angry Hedgehog

 

[Astray]

Very overpriced deal imo

 

[kanjobazooie]

Drafting an email to the CMA as we speak.

 

[harry mason 1989]

Monopoly
Shame on you sega
The congress should stop these japanese company's before its to late

 

[AlteredForms]

Angry Birds hasn't been relevant for some time now though. That's a lot of money on Sega's part for a washed up franchise. it's surprising to see such a bad move when historically they've done great. Creative Assembly and Relic Entertainment were solid acquisitions in the strategy genre.

 

[Spyxos]

Effective money burner.

 

[Holammer]

Release the perturbed birbs on Steam and I'll buy.
Rovio only ever released Angry Birds Space on Steam (delisted now of cuz) and giftable copies go for fantasy sums today.

 

[AlteredForms]

Release the perturbed birbs on Steam and I'll buy.
Rovio only ever released Angry Birds Space on Steam (delisted now of cuz) and giftable copies go for fantasy sums today.

I'm taken aback you did some research in the secondary market for a copy. You want to play Angry Birds Space that bad?

 

[ulantan]

Yall think congress will get involved with this one?

 

[Buggy Loop]

What a fucking waste

 

[nial]

Rovio and Atlus being under the same corporate umbrella is so damn funny to me.

 

[Heimdall_Xtreme]

With that budget, they should have released a new console

 

[Patrick S.]

Man, Star Wars for 4 Billion was the steal of the century.

 

[Holammer]

I'm taken aback you did some research in the secondary market for a copy. You want to play Angry Birds Space that bad?

I bought it at release. It's hard to not take notice when people sell giftable copies for 500€.

 

[AlteredForms]

Yall think congress will get involved with this one?

Hey, Mr Smithers!!!

 

[reksveks]

https://investors.rovio.com/en/financials-reports/key-financials#QUARTERLY-FIGURES

For thier top level financial'.

Not crazy but still OK.

 

[DaGwaphics]

Some mobile crap no one ever heard of.

That's what I figured. Didn't know if there were some more interesting IPs there that I was unaware of.

 

[Fbh]

Seems way overpriced for a company whose main product isn't nearly as popular as it once was.

According to their site their revenue in 2022 was $317 million and the operating profit was $39 million. Hardly seems worth the billion dollar investment specially with nothing exciting on the horizon.

 

[Spukc]

What a waste of 1B$

But I guess thats Sega

Mobile phone games make cash
Also fuck mobile phone games

 

[ReBurn]

Everyone is looking to buy mobile success

 

[VAVA Mk2]

But I thought Microsoft was buying Sega.

Just waiting for ABV to go through first...

 

[Warnen]

 

[feynoob]

I am going post this here, since people dont understand how good this deal is for sega.

They arent clown. If anything, its smart move.
Mobile brings alot of money, and having a proven mobile game is good for sega.
This is their revenue

Year	Rovio Annual Revenue
2022	€317.7 million
2021	€286.2 million
2020	€272.3 million
2019	€289.1 million
2018	€281.2 million
2017	€297.2 million
2016	€191.7 million
2015	€142.1 million
2014	€158.3 million
2013	€173.5 million
2012	€152.2 million
2011	€75.6 million
2010	€6.5 million

 

[Kagoshima_Luke]

 

[hemo memo]

Here is a better idea. Put 600 million budget to remake Persona 1,2,3,4 and save 400 million instead of this awful acquisition. Or just give that 1 billion Atlus, they will definitely spend it better.

 

[hemo memo]

I am going post this here, since people dont understand how good this deal is for sega.

And i’m gonna quote this post here so people know how awful this deal is:

Seems way overpriced for a company whose main product isn't nearly as popular as it once was.

According to their site their revenue in 2022 was $317 million and the operating profit was $39 million. Hardly seems worth the billion dollar investment specially with nothing exciting on the horizon.

 

[GHG]

I am going post this here, since people dont understand how good this deal is for sega.

Revenue doesn't paint the whole picture.

This is a nonsensical deal if the quoted figures are true.

 

[poppabk]

Angry birds has made much more money on merchandise and licensing than they ever did with the actual game. So maybe sega has a plan for that.

"In 2022, Rovio Entertainment, the developer of the popular mobile game Angry Birds generated 317.7 million euros in revenue. The majority of company revenues were generated via games, with brand licensing only accounting for 3.5 percent of the total result."
Sounds like they are still pulling in major revenue from games but the 'angry birds' on everything has died down.

 

[adamsapple]

What a waste of 1B$

But I guess thats Sega

Rovio generated 317 million euros in revenue last year. This investment will pay off and start earning a profit for Sega in a very short amount of time.

 

[FalsettoVibe]

Seems way overpriced for a company whose main product isn't nearly as popular as it once was.

According to their site their revenue in 2022 was $317 million and the operating profit was $39 million. Hardly seems worth the billion dollar investment specially with nothing exciting on the horizon.

I mean.... that's enough profit for Sega to make their money back in the next 4-5 years.

 

[poppabk]

I mean.... that's enough profit for Sega to make their money back in the next 4-5 years.

Err 1 billion divided by 39 million is not 5. But I can imagine there are plenty of ways to cut costs.

 

[UltimaKilo]

This is why SEGA will soon go bankrupt.

 

[rickybooby87]

And this right here is why Sega doesn’t make hardware anymore. And after this, it’ll probably be the reason why they don’t make games anymore.

 

[lyan]

Err 1 billion divided by 39 million is not 5. But I can imagine there are plenty of ways to cut costs.

Minus the cash Rovio has this deal is around 5% yearly return, still quite a bit higher than Activision.

 

[Sojiro]

But why? Has Rovio done anything even remotely relevant other than Angry Birds? Just seems like such a bone headed decision.

 

[TransTrender]

This from all that Sonic Frontiers money?
Jesus

 

[Shubh_C63]

It must be solely for the IP because what exactly Sega can learn from Rovio/Angry Birds. Sega has more knowledge about mobile game making and merchandising.

 

[DeVeAn]

They probably want an experienced mobile developer to help them in that space. Makes sense long term.

 

[feynoob]

Revenue doesn't paint the whole picture.

This is a nonsensical deal if the quoted figures are true.

Its not, considering the IPs that sega has.
Having a company that prints these type of revenue is generally a good thing, as they can generate more revenue, if you the content. Sega has the IPs to make a cash cow mobile games, and rovio has the mobile expertise.

They also have cloud infrastructe that is called beacon.


https://www.rovio.com/beacon/

 

[feynoob]

And i’m gonna quote this post here so people know how awful this deal is:

Its not awful. You will see that in the future.