Sega Sammy Holdings Inc, a Japanese company, announced on Monday that it is considering the acquisition of Rovio Entertainment Oyj, a Finnish company, but no final decisions have been made. This news caused a decline in Sega Sammy’s shares as investors questioned the potential benefits of the merger. Last week, The Wall Street Journal reported that Sega Sammy was close to finalizing a deal to purchase Rovio, the company behind the popular mobile game Angry Birds, for approximately $1 billion. Rovio has confirmed that discussions with Sega Sammy regarding a possible tender offer are underway.
In a statement, Sega Sammy clarified that while they are indeed exploring this strategic option, they have not yet reached a formal decision. The matter will be discussed further during a board of directors meeting scheduled for Monday. Sega Sammy is widely recognized for its famous action game series, ‘Sonic the Hedgehog’. Unfortunately, Sega Sammy’s shares fell 4.3 percent during mid-day trading, despite an otherwise stable market.
Toyo Securities analyst, Hideki Yasuda, commented on the potential acquisition, stating that Sega Sammy’s mobile gaming business primarily targets the domestic market, while ‘Angry Birds’ enjoys significant global recognition. Yasuda believes that acquiring Rovio would facilitate Sega Sammy’s global expansion. However, he notes that apart from Angry Birds, which was initially launched over a decade ago, Rovio has not had any other major successes. Investors would be more enthusiastic about the news if they had seen newer technologies or opportunities for growth from Rovio.
In January, Rovio received a takeover bid of 683 million euros ($750 million) from Israeli company Playtika Holding Corp. However, these negotiations were terminated last month. Rovio, based in Finland, launched Angry Birds in 2009 and has developed various other games since its establishment in 2003. However, none have achieved the same level of success as the Angry Birds franchise. Additionally, the Angry Birds series has expanded into films, TV shows, and merchandise, further enhancing its brand presence.
Please note that this content is subject to copyright © Thomson Reuters 2023.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
