Sega Sammy says it is considering buying Angry Birds maker Rovio
17/04/2023 04:50
TOKYO, April 17 (Reuters) - Japan's Sega Sammy Holdings
Inc 6460.T said on Monday it was considering acquiring
Finland's Rovio Entertainment Oyj ROVIO.HE but that nothing
had been decided yet, sending its shares lower amid investor
doubts about synergy prospects.
The Wall Street Journal reported last week that Sega Sammy
was nearing a deal to buy the Finnish firm behind the mobile
game Angry Birds for about $1 billion. Rovio has said it was in
talks with Sega Sammy over a possible tender offer.
"No formal decision has been made in this regard at this
time, while it is true that we are considering such strategic
option," Sega Sammy said in a statement.
The matter will be discussed during a board of directors
meeting on Monday, added Sega Sammy, which offers the iconic
action game series "Sonic the Hedgehog".
Sega Sammy shares fell 4.3% by midday in a broader market
.N225 that was virtually unchanged.
"Sega Sammy's mobile gaming business is centred on the
domestic market, while 'Angry Birds' is well known overseas. The
acquisition would make it easier for Sega Sammy to grow
globally," Toyo Securities analyst Hideki Yasuda said.
"But there has been no big hit (from Rovio) other than Angry
Birds, which was originally launched more than 10 years ago. The
news would have been welcomed more positively if investors had
seen newer technologies or more growth potentials," Yasuda said.
Rovio received a 683 million euro ($750 million) takeover
bid in January from Israeli peer Playtika Holding Corp 8II.F ,
but the talks were called off last month.
($1 = 0.9112 euros)
(Reporting by Kiyoshi Takenaka; Editing by Himani Sarkar)
((kiyoshi.takenaka@thomsonreuters.com; +81 3 4563 2788;))