Sega Sammy Holdings Inc. is nearing a deal to acquire the company behind the “Angry Birds” mobile game for about $1 billion, according to people familiar with the matter.
The Japan-based entertainment conglomerate could seal a deal to buy Rovio Entertainment Oyj by early next week, assuming the talks don’t break down or drag out, the people said.
Sega Sammy was created in 2004 through the merger of Japanese slot-machine company Sammy Corp. and Sega Corp., the videogame maker behind the character Sonic the Hedgehog. The combined company offers a range of entertainment products including arcade games, toys and animated video content.
Simple yet addictive, “Angry Birds” was a trailblazing mobile game released in 2009, when smartphones were still in their infancy. Players use a slingshot to fire their birds over, under and through various obstacles to knock out squadrons of green pigs attempting to steal their eggs.
It was the first mobile game to be downloaded 1 billion times, according to Rovio, which claimed last year to have reached the milestone of 5 billion downloads across its games catalog.
Rovio, based and listed in Finland, has built on the success of the original game by launching multiple sequels, as well as TV spin offs and movies. It went public in late 2017, hoping the listing would help its growth plans.
But Rovio hasn’t managed to replicate the success of “Angry Birds” with subsequent games, making the company susceptible to a takeover by a bigger rival, particularly as its aging franchise has itself been eclipsed in recent years by newer rivals.
Rovio previously was in talks to sell itself to Playtika Holding Corp. , an Israel-based rival, for more than $800 million. Those negotiations ended in March without a deal.
Global consumer spending on mobile games fell 6.4% last year to $92.2 billion, according to Newzoo BV. Still, that makes up about half of all game software sales, with the rest spent on console and computer games, the industry tracker estimates.
The slowdown, following a burst in demand during the pandemic, has added fuel to an already-active deal-making environment in the industry. Last year, Take-Two Interactive Software Inc. agreed to buy FarmVille maker Zynga Inc. for roughly $11 billion.
Soon after, Microsoft Corp. struck a $75 billion deal to buy Activision Blizzard Inc. , known for its Call of Duty and Candy Crush franchises, though the transaction is facing regulatory scrutiny in the U.S. and abroad. In addition, Sony Group Corp.’s videogame unit agreed last year to buy Bungie, the studio that created the Halo and Destiny series, for about $3.6 billion.
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Worst part? It's 8,980¥ in Japan. While that's still about 1,000¥ more then most releases, it's only about $65 USD.
The hopium was nice while it lasted......
