Rovio has agreed to be bought by Sega’s European branch for €706m / $775m. Expected to close in the second quarter of 2024, the deal marks a desire by Sega to invest in the mobile gaming market now that theSega Foreverinitiative is in the past.
The acquisition was announced todayand will add the Angry Birds franchise to Sega’s portfolio of games. In a press release, Sega explained the purchase is due to a desire to invest in the rapidly growing mobile gaming market, which it projects to grow from 53% of the global gaming market in 2022 to 56% by 2026.
Sega has stated that the purchase isn’t just to capitalize on the income generated by the Angry Birds franchise. Instead, it hopes to utilize Rovio’s expertise to accelerate and expand the development of Sega’s existing IPs on mobile. However, Sega has also stated that it aims to help Rovio expand its IPs (i.e., Angry Birds) to other platforms.
Before releasing Angry Birds in 2009, Rovio developed various independent and contracted video games. However, since then, it has almost been exclusively focused on the wildly successful franchise. Therefore, this acquisition may see a return to its roots for the company as it helps Sega grow its mobile gaming market share.
This isn’t to say that Angry Birds is finished, but interest has slackened recently. This announcement comes two months after Rovioremoved the original Angry Birds game from the Play Store. Rovio’s reasoning was that it wasn’t making them enough money and was drawing players away from other Angry Birds games packed with valuable microtransactions. This purchase, therefore, may be a lifeline for Rovio as it struggles to keep its most popular franchise relevant.
The mobile gaming industry is the subject of more and more focus by major corporations. Microsoft isprimed to release its own app store on iOS and Android, marking a renewed push into the mobile gaming market, so Sega isn’t alone in its endeavors investing in mobile’s future.
