Japan’s Sega Sammy Holdings Inc said on Monday it was considering acquiring Finland’s Rovio Entertainment Oyj but that nothing had been decided yet, sending its shares lower amid investors’ doubts about synergy prospects. The Wall Street Journal reported last week that Sega Sammy was close to a deal to buy the Finnish company behind the mobile game Angry Birds for about US$1 billion (approximately Rs. 8,200 crore). Rovio has said it is in talks with Sega Sammy about a possible takeover bid.
“At this time, no formal decision has been made in this regard, although it is true that we are considering such a strategic option,” Sega Sammy said in a statement. The matter will be discussed during a board meeting on Monday, added Sega Sammy, which provides the legendary action game series Sonic the Hedgehog.
Sega Sammy shares fell 4.3 percent through midday in a broader market that was little changed.
“Sega Sammy’s mobile gaming business is focused on the domestic market, while ‘Angry Birds’ is known abroad. The acquisition would make it easier for Sega Sammy to grow globally,” said Hideki Yasuda, an analyst at Toyo Securities. “But there hasn’t been a big hit (by Rovio) other than Angry Birds, which originally came out more than 10 years ago. The news would have been received more positively if investors had seen newer technologies or more growth potential,” Yasuda said.
Rovio received a €683 million ($750 million) takeover bid from Israeli rival Playtika Holding Corp in January, but talks broke down last month. Finland-based company Rovio launched Angry Birds on mobile platforms in 2009 and has developed many other games since its inception in 2003, but none have lived up to the success of the Angry Birds franchise. The series has also spawned various additional properties including movies, television series, and merchandise.
© Thomson Reuters 2023
