Japanese gaming industry giant, Sega, has officially bought Finland-based video game developers Rovio Entertainment, makers of Angry Birds. Supposedly, the deal went down for €706 million or about $775 million. Sega is looking to bolster its presence within the mobile gaming market with this acquisition. And what better way to do so than tap into the expertise behind the highly successful Angry Birds franchise? Sega is most known as the developer of the hit Sonic franchise.
It is worth noting that Angry Birds was the first mobile game ever to reach over 1 billion downloads. Moreover, Angry Birds, as a franchise, has also successfully produced two full-feature kids’ films and cartoon shows. This speaks volumes about how the mobile game franchise penetrated the lives of many and became a cultural phenomenon in the process.
Sega’s Plans After Acquiring the Creators of Angry Birds
According to Sega, its $775 million acquisition of Rovio is driven by its desire to strengthen its position in the worldwide gaming scene. As popular as they are already, the Japanese video game makers believe they could increase their influence even more. They believe getting a hold of the mobile gaming market is the way to do just that.
Sega then noted that the gaming industry is set to grow to over $263 billion within the next 3 years. Moreover, it believes that mobile gaming will be responsible for 56% of it. To capitalize on that, Sega said it would make full use of Rovio’s in-depth knowledge about the space. It specified the importance of the Finnish studio’s live service mobile gaming expertise to help bring its own existing and upcoming games to the forefront of the mobile gaming market.
The State of Rovio After The Deal
Even before Sega’s acquisition, Rovio was doing fine for itself. Just last year, it stated that downloads across its extensive mobile games list had reached over 5 billion. Furthermore, Rovio has about 550 employees across its eight large game studios all over the world. Even though its operating profits are dropping, the studio notes that its revenue numbers are still on their way up. Their recorded revenue of $298 million in 2020 grew to $348 million in 2022.
All in all, the deal seems to be a win-win situation for both parties. Sega is set to make a grander impact on the mobile gaming space after the acquisition. On the other hand, Rovio gets a boatload of money and the backing of a video game titan. Notably, the Finnish game maker’s shares jumped by over 18% after the deal officially went down.
The Angry Birds franchise is now under the Sega banner! Will we be seeing them in future Sega games or collaborations? Only time can tell. For more gaming news and everything gaming-related make sure you stay tuned to our website and follow our socials.