Why SEGA Is Buying Rovio Entertainment For €706 Million

By Amit Chowdhry ● Apr 19, 2023

SEGA – a subsidiary of SEGA SAMMY HOLDINGS – at the meeting of its Board of Directors held on April 17, 2023, resolved to implement a tender offer to buy Rovio Entertainment Oyj, a mobile game company headquartered in Finland, through SEGA’s wholly-owned UK subsidiary SEGA Europe Limited and SEGA SAMMY HOLDINGS has entered into a definitive agreement with Rovio pursuant to which the tender offer is made.

Through the tender offer, SEGA aims to acquire the entirety of Rovio’s outstanding shares and options at €9.25 per share and €1.48 per option, or €706 million in total (approximately ¥103,680 million converted at €1 = ¥146.9 (FX rate as of April 14, 2023).

The acquisition is a friendly takeover as Rovio’s board of directors has agreed to the deal and has expressed support towards the tender offer. The shareholders in Rovio who in aggregate hold shares corresponding to approximately 49.1% of the outstanding shares and votes in Rovio, have irrevocably undertaken to accept the Offer, subject to certain customary conditions. The acquisition is expected to close in the second quarter of 2024 and is contingent on the completion of reviews under applicable antitrust laws and other customary conditions.

In order to strengthen global development capabilities, SEGA historically acquired numerous development studios, from the UK-based The Creative Assembly Ltd. in 2005, to the Japan-based ATLUS. CO., LTD. (formerly, Index Corporation) in 2013, and the acquired studios have all greatly expanded their scale while also releasing many new titles across the globe.

Through the acquisition, SEGA aims to take in Rovio’s live-operated mobile game development capabilities and expertise in mobile game operation, to accelerate the development of mobile-compatible and multi-platform-supported versions of SEGA’s existing game IPs, thus strengthening and further accelerating the global expansion of SEGA’s game portfolio.

Rovio is a global mobile-first, games company that creates, develops, and publishes mobile games, which have been downloaded over 5 billion times. Rovio is best known for the global Angry Birds brand, which started as a popular mobile game in 2009 and has since evolved from games to various entertainment, anime, and consumer products through brand licensing.

Plus SEGA aims to accelerate its growth in the global gaming market and increase its corporate value by generating synergies between SEGA’s existing businesses and Rovio’s strengths, including its global IPs and live-operated mobile game development capabilities.

More specifically, SEGA aims to create synergies with a particular focus in the following areas:

1.) Utilization of Rovio’s distinctive know-how in live service mobile game operation, to bring SEGA’s current and new titles to the global mobile gaming market, where there is large potential, and many users can be accessed

2.) SEGA strongly believes Rovio’s platform, Beacon, holds 20 years of high-level expertise in live service-mobile game operation centered around the United States and Europe

3.) Rovio and SEGA have both succeeded in extending their IPs, “Angry Birds” and “Sonic the Hedgehog”, to various media outside of video games, such as movies, anime, and merchandising and accordingly hold a strong fanbase around the world as well as know-how regarding IP expansion

4.) Rovio is aiming to expand its platform outside of mobile gaming, and SEGA will actively look to support this process through its capabilities


“Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been SEGA’s long-term goal to accelerate its expansion in this field. I feel blessed to be able to announce such a transaction with Rovio, a company that owns ‘Angry Birds’, which is loved across the world, and home to many skilled employees that support the company’s industry-leading mobile game development and operating capabilities. Historically, as represented by the “Sonic the Hedgehog” series, SEGA has released countless video game titles to various gaming platforms. I am confident that, through combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.”

– Haruki Satomi, President and Group CEO, Representative Director of SEGA SAMMY HOLDINGS

I grew up playing Sonic the Hedgehog, captivated by its state-of-the-art design. Later, when I played Angry Birds for the first time, I knew that gaming had evolved into a true mainstream phenomenon, with the power to shape modern culture.

Joining Rovio has been an honor and I am proud to have seen Angry Birds continue to grow, as we released new games, series, and films. Less known but equally impressive is our industry-leading proprietary technology platform, Beacon, holding 20 years of expertise, allowing tight-knit teams to develop world-class GaaS products.

Our mission is to ‘Craft Joy’ and we are thrilled at the idea of using our expertise and tools to bring even more joy to our players, enhancing and expanding Rovio’s and SEGA’s vibrant IPs.

Red and Sonic the Hedgehog: two globally recognized and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC/console, and beyond. Combining the strengths of Rovio and SEGA presents an incredibly exciting future.

– Alexandre Pelletier-Normand, CEO of Rovio