Uncategorized
Sega Agrees to Buy Video Game Maker Rovio
Sega Sammy Holdings has agreed to pay €706 million to buy Finland-based Rovio Entertainment, the mobile game company behind “Angry Birds”.
Announcing the deal, Sega said its decision to buy Rovio had been driven by the need to “strengthen its position” in the global gaming market.
It said this market is projected to grow to $263.3bn by 2026, with the percentage of mobile gaming expected to increase to 56%.
Sega said it would use Rovio’s “distinctive know-how in live service mobile game operation” to help bring its own current and new titles to the global mobile gaming market.
It highlighted Rovio’s mobile gaming platform, Beacon, which it said had “20 years of high-level expertise in live service-mobile game operation” in the US and Europe.
“Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been Sega’s long-term goal to accelerate its expansion in this field,” Haruki Satomi, chief executive of Sega Sammy Holdings, said.
“I feel blessed to be able to announce such a transaction with Rovio, a company that owns ‘Angry Birds’, which is loved across the world, and home to many skilled employees that support the company’s industry leading mobile game development and operating capabilities,” he added.
Edward James, an analyst at Berenberg, said Rovio was an “attractive asset” as it owns “one of the best and strongest brands in mobile games” in Angry Birds.
He added that the Beacon mobile gaming platform was “very useful” for Sega.
“Given the size of the Angry Birds franchise and the long duration nature of the titles, the depth of data and know-how of the Beacon platform is exceptionally valuable and near on impossible for Sega to build from scratch, at least in a reasonable time frame.”
Powered by WPeMatico