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2023-01-26 19:42:14
Playtika will offer a 55% premium on the Angry Birds maker’s share price in an all-cash deal.
Specifically, Playtika is looking to acquire Rovio, the popular mobile game publisher, and it announced that it has made an all-cash offer of 9.05 euros per share to the board of directors. by Rovio. This brings the total amount offered to almost 751 million euros, or $813 million.
Playtika wants to buy Rovio.
The offer is non-binding and Playtika says it has not reached any agreement with Rovio on this matter. “We firmly believe that the combination of Rovio’s renowned IP and the size of the user base along with the best gaming and monetization capabilities will create tremendous value for our shareholders.” – Playtika CEO, Robert Antokol, said.
Buyback offer comes with downsizing for Playtika. The company laid off 600 employees last month, adding to the 250 layoffs reported last June. And during that time, the company cut another 120 jobs by shutting down developer Best Fiends Seriously, which it acquired in 2019.
Although Rovio’s shares traded briefly above Playtika’s offering in May last year, the stock has not closed a trading day above 9.05 euros since its profit at the start of the year. 2018 caused the company’s stock price to nearly halve in just one day.
Angry Birds is Rovio’s most popular game.
Rovio issued a statement on the proposed acquisition, saying that the board of directors was not aware of the offer, noting that the board would need shareholder approval from people who control at least 90 % shares of Rovio, as well as other regulatory approvals. “At this time, Rovio is not entering into any negotiations with Playtika,” a game company representative said. “Rovio’s board of directors is evaluating the proposed proposal and will determine whether to proceed.”
Shares of Rovio fell 2.5% to $5.67 in Finnish stock exchange trading ahead of the public offering, while Playtika fell 2.6% in US trading. Rovio has been through a tumultuous time since going public in September 2017 at a price of $11.5, and the company’s growth is still heavily reliant on the Angry Birds franchise despite its efforts. diversification by acquisitions in 2021.
The game maker has also been caught up in an industry-wide downturn, especially in the mobile market, after two years of boom due to the pandemic. Global mobile game revenue fell more than 6% to $92.2 billion in 2022, according to estimates from game analytics firm Newzoo.
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