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[Lunatic_Gamer]

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.

Israeli peer Playtika (8II.F), had made a preliminary bid in January to buy Rovio for 683 million euros ($750.96 million), but the Angry Birds maker confirmed last month talks had ended.

Rovio and Sega did not immediately respond to Reuters' requests for comment.

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

 

[Fat Frog]

Sega >

 

[Ozriel]

Sega >

You’ve run the revenue projections and profit forecasts and concluded the deal doesn’t make sense ?

 

[feynoob]

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

 

[CrashNBurn_281]

If true, smart.

 

[LaughingStock]

My reaction is "But why?"

But then again, I'm dumb and poor. What do I know?

 

[Draugoth]

With that money they could have bought Square Enix

 

[SteelCurtain 59]

Hopefully the added revenue helps them in making more quality Persona/Yakuza games, otherwise I couldn't care less about mobile

 

[Fat Frog]

You’ve run the revenue projections and profit forecasts and concluded the deal doesn’t make sense ?

There are far more interesting deals than Rovio. Even if they still have high revenues, they have like what ? 1 or 2 really strong IPs ... I highly doubt their business is balanced enough for years to come.

Of course, as a Sega subsidiary, Rovio will have more opportunities and tools to grow but i still think there are far more interesting investments in the wild than this for Sega.

The real deal was buying Creative Assembly for $30 million, Atlus for $170... If the Angry Bird franchise declines, i'm not sure there are at Rovio as much talented developers as Atlus or Creative Assembly to create new Sega IPs... Could be wrong but i wouldn't take 1 billion bet...

 

[TLZ]

Oh boy. I hope that money they make back from Angry Birds encourage them to make an awesome console again

 

[ChorizoPicozo]

survival

 

[feynoob]

There are far more interesting deals than Rovio. Even if they still have high revenues, they have like what ? 1 or 2 really strong IPs ... I highly doubt their business is balanced enough for years to come.

Of course, as a Sega subsidiary, Rovio will have more opportunities and tools to grow but i still think there are far more interesting investments in the wild than this for Sega.

The real deal was buying Creative Assembly for $30 million, Atlus for $170... If the Angry Bird franchise declines, i'm not sure there are at Rovio as much talented developers as Atlus or Creative Assembly to create new Sega IPs... Could be wrong but i wouldn't take 1 billion bet...

Sega can get more money from mobile, compared to consoles.
https://www.businessofapps.com/data/top-grossing-games/

Cheap to make and more revenue to gain in the process.

The silver lining from this, is that they will be able to increase their revenue.

 

[splattered]

So I guess when Microsoft finally buys Sega they will also own Rovio. Nice.

 

[lh032]

why there are no companies trying to outbid sega?like tencent, Microsoft, Embracer?

Someitmes i dont understand how these acquisition works.

 

[M1chl]

Wednesday, when?

 

[feynoob]

why there are no companies trying to outbid sega?like tencent, Microsoft, Embracer?

Someitmes i dont understand how these acquisition works.

portfolio.
Companies buy what fits their portfolio. You wont get crazy bid, unless both buyers share the same porfolio for their acquision. See Manchester united sale.

Companies acquire other companies for various reasons. They may seek economies of scale, diversification, greater market share, increased synergy, cost reductions, or new niche offerings.

 

[Fat Frog]

Sega can get more money from mobile, compared to consoles.
https://www.businessofapps.com/data/top-grossing-games/

Cheap to make and more revenue to gain in the process.

I'm aware of it.
As for Rovio, it's not "cheap to but".

I'll give you a good example.

Years ago, Sega created a great mobile studio and it was probably faaaaar less expensive and risky.

Hardlights studio...
"What is that shit ?"

The studio who made Sonic Dash (1 billion downloads), ported Two Point Hospital on console, created the nice Chuchu Rocket Universe, helped to port Yakuza and Valkyria 4 on PC...

I know Sega can make good money with mobile games. Creating Hardlight with talented staff (ex Codemaster, ex Eidos employees, UK people who grew up with Sega consoles...)
https://web.archive.org/web/2020031...ing-of-sega-hardlight-chuchu-rocket-universe/
"How happy are you with the game's launch so far?

For many of us on the team who grew up playing Sega games, it was a special moment to work on ChuChu Rocket and I think this love and enthusiasm comes across when you play the game."

"
What can you tell us about your future mobile projects?

I can't say what we will be working on next but hopefully, with the release of ChuChu Rocket Universe we have ticked a box out there for ChuChu fans. I think there is a growing demand for classic Sega games to be brought back to life and as a fan of many of those games, that's fine by me!"

People in UK know Sega's history and they proved it with Chuchu Universe, Sonic Racing, Valkyria, Yakuza ports...

Rovio's staff could be talented(don't know if finnish developers know Sega's legaxy as well as UK) but i wouldn't take that risk for 1 strong IP... Sega doesn't have Microsoft warchest. :/

 

[feynoob]

I'm aware of it.
As for Rovio, it's not "cheap to but".

I'll give you a good example.

Years ago, Sega created a great mobile studio and it was probably faaaaar less expensive and risky.

Hardlights studio...
"What is that shit ?"

The studio who made Sonic Dash (1 billion downloads), ported Two Point Hospital on console, created the nice Chuchu Rocket Universe, helped to port Yakuza and Valkyria 4 on PC...

I know Sega can make good money with mobile games. Creating Hardlight with talented staff (ex Codemaster, ex Eidos employees, UK people who grew up with Sega consoles...)
https://web.archive.org/web/2020031...ing-of-sega-hardlight-chuchu-rocket-universe/
"How happy are you with the game's launch so far?

For many of us on the team who grew up playing Sega games, it was a special moment to work on ChuChu Rocket and I think this love and enthusiasm comes across when you play the game."

"
What can you tell us about your future mobile projects?

I can't say what we will be working on next but hopefully, with the release of ChuChu Rocket Universe we have ticked a box out there for ChuChu fans. I think there is a growing demand for classic Sega games to be brought back to life and as a fan of many of those games, that's fine by me!"

People in UK know Sega's history and they proved it with Chuchu Universe, Sonic Racing, Valkyria, Yakuza ports...

Rovio's staff could be talented(don't know if finnish developers know Sega's legaxy as well as UK) but i wouldn't take that risk for 1 strong IP... Sega doesn't have Microsoft warchest. :/

Raviou revenue tells other story.
While IP is small, that cant be said the same about their revenue.
Also this studio can take and make some of those IPs too.

 

[Ozriel]

There are far more interesting deals than Rovio. Even if they still have high revenues, they have like what ? 1 or 2 really strong IPs ... I highly doubt their business is balanced enough for years to come.

Of course, as a Sega subsidiary, Rovio will have more opportunities and tools to grow but i still think there are far more interesting investments in the wild than this for Sega.

The real deal was buying Creative Assembly for $30 million, Atlus for $170... If the Angry Bird franchise declines, i'm not sure there are at Rovio as much talented developers as Atlus or Creative Assembly to create new Sega IPs... Could be wrong but i wouldn't take 1 billion bet...

There’s a reason why Rovio is valued much higher than Creative Assembly and Atlus combined.

You don’t do business based on what you find ‘interesting’. You follow the money. And Rovio makes more money than Atlus, and brings in mobile gaming expertise.

Sega could easily use Rovio to exploit mobile gaming for some of their iconic IP.

 

[onQ123]

Sega said we not being bought on a Wednesday we are doing the buying

 

[Fat Frog]

Raviou revenue tells other story.

It's about business balance (i wouldn't be so doubtful if Rovio had 5 to 10 popular franchises)

 

[IFireflyl]

With that money they could have bought Square Enix

Not even close.

 

[GHG]

So I guess when Microsoft finally buys Sega they will also own Rovio. Nice.

 

[Fat Frog]

There’s a reason why Rovio is valued much higher than Creative Assembly and Atlus combined.

You don’t do business based on what you find ‘interesting’. You follow the money. And Rovio makes more money than Atlus, and brings in mobile gaming expertise.

Sega could easily use Rovio to exploit mobile gaming for some of their iconic IP.

I think you don't get my point. I know Rovio's revenues are bigger than Atlus's.
Nonetheless, it's risky to spend a crazy amount of money on a company that relies too much on a very few brands...

Projections must evaluate disaster scenarios:

- If the Angry Bird brand declines then...:Good luck gif:
(It would'nt be the same if Rovio had a load of strong IPs.)


Also, i already said Sega could (and would)use Rovio staff for their other classic IPs but if the birds collapse it would be a crazy expensive new staff (Hardlight already does a good job in that area.)

 

[chromhound]

 

[feynoob]

I think you don't get my point. I know Rovio's revenues are bigger than Atlus's.
Nonetheless, it's risky to spend a crazy amount of money on a company that relies too much on a very few brands...

Projections must evaluate disaster scenarios:

- If the Angry Bird brand declines then...:Good luck gif:
(It would'nt be the same if Rovio had a load of strong IPs.)


Also, i already said Sega could (and would)use Rovio staff for their other classic IPs but if the birds collapse it would be a crazy expensive new staff (Hardlight already does a good job in that area.)

That would be the case if Sega didnt have any IPs.
The manpower is enough for Sega to expand their IPs in to the mobile market.

 

[Fat Frog]

There is also Beacon.
Maybe i underestimate its value (that would be the only argument that could change my mind on the subject)