Considering buying Angry Birds maker Rovio, says Japan’s Sega Sammy

Japan’s Sega Sammy Holdings Inc stated on Monday it was contemplating buying Finland’s Rovio Entertainment Oyj, maker of the cell sport Angry Birds, however that nothing had been determined but, sending its shares decrease amid investor doubts about synergy prospects.

The Wall Street Journal reported final week that Sega Sammy was nearing a deal to purchase the Finnish agency for about $1 billion. Rovio has stated it was in talks with Sega Sammy over a doable tender provide.

“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 stated in a press release.

The matter will likely be mentioned throughout a board of administrators assembly on Monday, added Sega Sammy, which presents the long-lasting motion sport sequence “Sonic the Hedgehog”.

Sega Sammy shares fell 4.3% by noon in a broader market that was nearly 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 stated.

“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 stated. Rovio obtained a €683 million ($750 million) takeover bid in January from Israeli peer Playtika Holding Corp, however the talks had been known as off final month.

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