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In this article, we’ll examine the driving factors behind Sega’s decision to acquire Rovio Entertainment, the creator of the iconic Angry Birds franchise, and how this acquisition will impact both companies in the ever-growing mobile gaming market.
Key Takeaways:
- Sega has bought Rovio Entertainment for €706m ($775m) as a way to improve its standing in the worldwide gaming industry.
- Mobile gaming is projected to grow to 56% of the overall gaming market by 2026.
- Rovio’s Beacon platform provides valuable expertise in live service mobile game operation.
- Rovio’s revenues increased in 2022, but operating profits have fallen over the same period.
- Sega aims to bring its current and new titles to the global mobile gaming market using Rovio’s know-how.
- Rovio will become part of Sega Europe, alongside other notable studios.
A High-Flying Deal: Sega Acquires Rovio Entertainment
Sega, a famous gaming company from Japan, has recently bought Rovio Entertainment, a Finnish company that created the famous game Angry Birds.
This partnership is perfect for gamers and will surely be a hit!The deal, which was agreed upon by both parties, is valued at a whopping €706 million (or $775 million), making it a significant move in the gaming industry.
The two companies, both household names in their own right, have created some of the most memorable gaming experiences for millions of players around the world.
With Sega’s famous Sonic the Hedgehog character and Rovio’s beloved Angry Birds, this acquisition sets the stage for an exciting future for gaming enthusiasts everywhere.
Mobile Gaming on the Rise: Projections and Growth
As mobile devices continue to become more powerful and versatile, the gaming industry has been quick to adapt.
In recent years, the mobile gaming market has grown exponentially, with more and more people downloading and playing games on their smartphones and tablets.
According to Sega, the global gaming market is projected to reach $263.3 billion by 2026, with mobile gaming accounting for an impressive 56% of the overall market.
With these numbers in mind, it’s no surprise that the company has set its sights on Rovio, which has established itself as a leader in the mobile gaming space.
Rovio has reported that its Angry Birds games have been downloaded over one billion times, making it the first mobile game to reach such an incredible milestone.
Furthermore, the company has successfully expanded its brand with two Angry Birds movies and numerous spin-off games, solidifying its place as a mobile gaming powerhouse.
The Power of Rovio’s Beacon Platform
One of the key factors that make Rovio an attractive acquisition target for Sega is its Beacon platform.
This mobile gaming platform boasts 20 years of high-level expertise in live service mobile game operation in the US and Europe, making it an invaluable asset for any company looking to expand its presence in the mobile gaming market.
The Beacon platform provides crucial insights and know-how that would be difficult, if not impossible, for Sega to develop on its own, at least in a reasonable time frame.
By acquiring Rovio, Sega gains access to this treasure trove of knowledge, setting the company up for success in the competitive world of mobile gaming.
Rovio’s Financial Performance and Valuation
Despite the popularity of the Angry Birds franchise, Rovio’s financial performance has been a mixed bag in recent years.
The company’s revenues increased from €272.3 million in 2020 to €317.7 million in 2022.
However, during the same period, operating profits fell from €42.5 million to €28.6 million.
Before the acquisition, Rovio had a stock market valuation of $707 million (£571 million).
Following the announcement of the deal with Sega, Rovio’s shares jumped by nearly 18% on Monday, showcasing the market’s optimism about the acquisition.
Sega’s Plan to Conquer the Mobile Gaming Market
With the acquisition of Rovio, Sega has made it clear that it intends to strengthen its position in the mobile gaming market.
The company plans to use Rovio’s distinctive know-how in live service mobile game operation to bring its current and new titles to the global mobile gaming market, where there is vast potential and a large user base waiting to be tapped.
The CEO of Sega Sammy Holdings, Haruki Satomi, shared his enthusiasm for the acquisition of Rovio.
He expressed how fortunate he feels to announce this deal with a company that owns the widely adored game ‘Angry Birds’ and has many talented employees who help develop and operate industry-leading mobile games.
He went on to emphasize Sega’s long-term goal of accelerating its expansion in the mobile gaming field.
Rovio’s New Home: Sega Europe
As a result of the acquisition, Rovio will become part of Sega Europe, the UK-based subsidiary of Sega.
This division also includes other prestigious game development studios such as Creative Assembly, known for the Total War series, and Sports Interactive, the team behind the popular Football Manager games.
This new arrangement is expected to bring together some of the most talented individuals in the gaming industry, fostering a creative environment where groundbreaking ideas can flourish.
The collaboration between Rovio’s mobile gaming expertise and Sega’s rich history in the gaming world is bound to lead to exciting developments for gamers across the globe.
In addition to helping Sega expand its presence in the mobile gaming market, the acquisition is also expected to benefit Rovio.
Sega has expressed its commitment to assisting Rovio in extending its reach beyond mobile gaming and launching its games on other platforms.
Furthermore, both companies have a proven track record of successfully bringing their gaming IPs to the big screen, with the Angry Birds and Sonic the Hedgehog movies.
This shared experience in multimedia expansion opens up even more possibilities for the future of their partnership.
Conclusion
The acquisition of Rovio Entertainment by Sega marks a strategic move to capitalize on the booming mobile gaming market.
By joining forces with Rovio, Sega is positioning itself for greater success in this lucrative industry, while also providing Rovio with the support it needs to grow and evolve.
As both companies have demonstrated their ability to adapt and expand into new mediums, this partnership is likely to result in innovative and engaging gaming experiences for players around the world.
With the combined talent and resources of Sega and Rovio, the possibilities are virtually limitless.
