Japanese entertainment conglomerate Sega Sammy recently announced its acquisition of Finnish mobile game developer Rovio Entertainment for €706 million ($786 million). The deal has been in the works since February and was officially closed in May 2021. Sega Sammy sees the acquisition as a significant investment in the future of the gaming industry.
Rovio Entertainment is best known for its popular mobile game franchise, Angry Birds. The game has become a global phenomenon since its release in 2009, with over 4.5 billion downloads to date. The success of Angry Birds has also led to the creation of merchandise, an animated series, and even a feature film. However, Rovio’s success has not been limited to Angry Birds. The company has also released other popular mobile games, such as Bad Piggies and Battle Bay.
Sega Sammy’s acquisition of Rovio is part of a larger strategy to expand its presence in the gaming industry. Sega Sammy has been shifting its focus away from the pachinko and slot machine markets, which have been declining in Japan due to tighter regulations, and towards video games. The acquisition of Rovio is expected to give Sega Sammy access to a wider audience and new revenue streams, particularly in the mobile gaming market.
According to Sega Sammy’s CEO, Haruki Satomi, the acquisition of Rovio is “a significant milestone for Sega Sammy Group’s growth strategy.” Satomi went on to say that Rovio’s expertise in the mobile gaming market, as well as its strong IP portfolio, will be valuable assets for Sega Sammy. The company plans to leverage Rovio’s resources to develop new games and expand its global reach.
The acquisition is also expected to bring benefits to Rovio. Sega Sammy has a strong presence in the Japanese gaming market, which is the third-largest in the world, and the company plans to use this to Rovio’s advantage. The deal will also provide Rovio with access to new resources and expertise, which will enable the company to continue to innovate and create new games.
While some analysts have raised concerns about the high price tag of the acquisition, others see it as a smart move for Sega Sammy. The gaming industry is booming, with mobile gaming in particular experiencing significant growth. According to a report by Newzoo, the global mobile gaming market is expected to generate $98 billion in revenue in 2021, up from $77 billion in 2020.
The acquisition of Rovio is just one example of the gaming industry’s continued growth and evolution. With the rise of mobile gaming, the industry is experiencing a shift away from traditional console and PC games. This has led to new players entering the market, as well as established companies like Sega Sammy adapting their strategies to stay relevant.
In conclusion, Sega Sammy’s acquisition of Rovio Entertainment is a significant move for both companies and the gaming industry as a whole. It represents a shift towards mobile gaming and a focus on expanding global reach and revenue streams. As the industry continues to evolve, we can expect to see more acquisitions and partnerships as companies look to stay ahead of the curve and capitalize on the growing market.
