Sega, the Japanese video game company, announced on Monday that it has agreed to acquire Rovio, the Finnish company behind the popular Angry Birds franchise, for $775 million. With this acquisition, Sega aims to bolster its presence in the mobile gaming market and leverage Rovio’s expertise to bring its intellectual property, including Sonic the Hedgehog, to mobile platforms in a huge way.
With the acquisition of Rovio, Sega is poised to strengthen its position in the mobile gaming market and broaden the reach of its iconic characters and franchises. The deal promises exciting opportunities for both companies as they work together to navigate the evolving landscape of the gaming industry.
The deal, approved by Rovio’s board and shareholders, is expected to be completed by the end of September 2023. Mobile gaming has experienced significant growth in recent years, with Sega projecting that it will account for 56% of the gaming market by 2026. The acquisition of Rovio will allow Sega to tap into the mobile gaming market’s vast potential and large user base. The company plans to utilize Rovio’s unique expertise in live-service mobile game operations to bring current and new titles to the global mobile gaming audience.
In return, Sega intends to help Rovio expand beyond mobile gaming and launch its games on other platforms. Rovio’s Angry Birds franchise was an early success story in smartphone gaming, but the company has struggled to diversify beyond its flagship brand.
This acquisition by Sega demonstrates the ongoing trend of consolidation in the video game industry, with other significant deals, such as Sony’s $3.6 billion acquisition of Bungie and Microsoft’s $68.7 billion purchase of Activision Blizzard, highlighting the sector’s rapid growth and appetite for expansion.
