Sega Sammy Holdings has successfully finalized its acquisition of Rovio, the company behind the iconic Angry Birds franchise.

With a staggering price tag of €706 million ($776 million), this acquisition marks Sega's entry into the highly lucrative mobile gaming sector, aiming to revive its presence.

What Happened to Rovio

Rovio's journey has been a rollercoaster ride. Despite achieving the remarkable milestone of being the first mobile game to reach 1 billion downloads and two billion downloads for Angry Birds afterward in 2014, the Finnish company struggled to maintain its financial stability.

After a series of unsuccessful attempts with licensed merchandise and spin-off products, Rovio faced multiple rounds of layoffs and studio closures due to flagging profits.

However, Rovio's fortunes saw a glimmer of hope with the success of the Angry Birds Movie in 2017. Unfortunately, even this win was temporary, leaving the business battling with persistent challenges.

Rovio's desperate attempts to diversify and launch new IPs have fallen short, underscoring the cutthroat nature of the modern mobile gaming market.

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Sega's Strategic Move

The acquisition, which was initially proposed back in April, showcases Sega's vision of expanding its reach and influence within the mobile gaming sphere.

Haruki Satomi, CEO of Sega Sammy Holdings, noted back in April that mobile gaming holds immense potential, and this deal underscores the company's commitment to realizing that potential.

With Rovio's expertise in live service mobile game operations, Sega aims to strengthen its mobile portfolio while tapping into the global market's vast opportunities.

Beyond its notable acquisition, Sega's portfolio includes cherished franchises like Sonic, Samba de Amigo, Persona, and Football Manager.

With Rovio under its wing, Sega now possesses a pre-established infrastructure for mobile game development, publishing, and advertising-a head start that positions the company for swift expansion.

Angry Birds and Beyond

While Rovio's flagship franchise, Angry Birds, may have lost some of its former luster, it remains a valuable commodity with movies, TV shows, and even a themed restaurant in New York City.

With Sega's involvement, it is interesting to speculate on possible collaborations between our feathered friends from Angry Birds and Sonic's dynamic characters.

Furthermore, Rovio's IPs extend beyond Angry Birds, encompassing titles like Sugar Blast and Small Town Murders.

While these may not be household names, they add diversity to Sega's new gaming arsenal, providing opportunities for creative exploration and innovation.

What's Next?

Now that Rovio is part of SEGA, PhoneArena notes that it would be interesting to see if the Japanese publisher/developer will allow the studio to continue making Angry Birds games or if they will be assisting in the development of SEGA's titles.

The acquisition also brings about a significant relationship between the two gaming giants. Sega's vast library of IPs and Rovio's well-honed capabilities in mobile game operations offer a recipe for synergy.

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