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Japanese video game developer Sega Sammy Holdings Inc. Rovio is buying Finnish video game maker Entertainment, the creator of Angry Birds, for about $776 million.
According to a statement from Sega on Monday, Sega has offered Rovio shareholders $10.17 per share and the company's option holders $1.63 per option. Rovio's board of directors unanimously recommended that shareholders accept the offer, which was supported by 49% of shareholders, including Rovio's founding family Hed.
The deal concludes multi-party talks following an $810 million bid from Playtica Holding Corp. it was announced earlier this year. Rovio announced on March 22 that it had ended negotiations with Playtica, but was in contact with other parties. Sega's offer is a 63% premium to Rovio's closing price on January 19, which preceded Playtika's offer. Sega's offer represents about 19% of Friday's closing price.
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Sega is focusing on console and smartphone games for long-term growth, as its traditional pachinko and arcade businesses have seen declines in viewership in recent years, partly due to restrictions due to the COVID-19 pandemic.
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Games developed by Sega include Sonic the Hedgehog, Crazy Taxi and Yakuza.
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When Sega announced the deal, it said the decision to buy Rovio was driven by the need to "strengthen its position" in the global gaming market. According to the BBC, the company said the market will reach $263.3 billion by 2026 and mobile gaming will grow by 56%.
"Among the fast-growing global gaming market, the mobile gaming market has particularly high potential, and Sega's long-term goal is to accelerate its expansion in this area," he said.
"I am honored to announce this agreement with Rovio, the globally recognized owner of Angry Birds, home to many talented employees who support the company's industry-leading mobile game development and operations capabilities." .
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Rovio's Angry Birds, the company's most popular franchise, hit app stores in 2009. According to Bloomberg, mobile games account for more than 80 percent of Rovio's orders. The game was the first mobile game to reach 1 billion downloads. Following the success of the game, Rovio went public in 2017 with a market value of around $990 million.
The Finland-based company suffered a slump in its first months on the stock market after financial reports disappointed shareholders and the stock never fully recovered from its losses.
Rovio developed more than 50 video games in the early years, including Darkest Fear, Cyber Blood, and Wolf Moon, first released for iOS and Maemo devices when touchscreen technology was new to the iPhone. a big hit with Angry Birds.
The company hasn't had the same success with other titles as it did with Angry Birds, which has worried investors. Rovio has also been looking to branch out into other gaming brands and genres. He said that some new games are being prepared.
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Rovio has also acquired competitors and smaller game studios to develop hyper-casual and puzzle games.
The Angry Birds franchise has included two movies and a Netflix show since 2016. Rovio generates royalties for consumer products.
Last year, Rovio said sustained game downloads reached five billion.
Reuters contributed to this report.
