The Israeli company Playtika Holding Corp. has submitted an offer to buy Rovio Entertainment Oyj, maker of the mobile game Angry Birds, for around EUR 750 million.
Playtika, a company involved in the production and monetization of mobile games such as Bingo Blitz, reported, which submitted a purchase proposal to the board of directors of the company from Espoo (Finland) at a price of EUR 9.05 per share in cash. While no previous offers from Playtika have been reported, the Israeli company claims that on November 16 it offered to buy Rovio at a price of €8.50 per share.
According to Playtika, Rovio shares rose 34% to €7.60. The Israeli company’s bid is 60% higher than Rovio’s market value as of Thursday’s close on Nasdaq Helsinki. At the same time, Playtika shares fell 6.4% on the New York Stock Exchange after the announcement, but then partially recovered.
Rovio specifiedthat the Playtika proposal has not yet been considered by the Board and no negotiations are ongoing between them. The Finnish company also said it plans to study the proposal before deciding how to proceed.
When written down Bloomberg, Rovio’s Angry Birds franchise, launched in 2009, accounts for more than 80% of the Finnish company’s purchases. It is the first mobile game in the world to reach 1 billion downloads. Largely due to its success, Rovio went public in 2017.
Rovio’s strong belief in Angry Birds’ success is a concern for investors. And to get rid of this addiction, the company develops 10 new games and acquires smaller rival companies and game studios to try to succeed with hyper-casual games and puzzle games.
Regarding the Playtika proposal, the Finnish company emphasized this “There is no guarantee that the indicative offer will result in a cash tender offer or any other transaction.”