Israel-Based Game Developer Playtika Sends Acquisition Proposal to Angry Birds Creator Rovio

UTC by Darya Rudz · 3 min read
Israel-Based Game Developer Playtika Sends Acquisition Proposal to Angry Birds Creator Rovio
Photo: Depositphotos

This is the second offer made by Playtika to Rovio. No agreements have been made between the companies, and there is no assurance that any transaction will materialize or eventually be completed.

Israel-based mobile games developer Playtika Holding Corp (NASDAQ: PLTK) has sent a proposal to buy Finnish video game developer Rovio Entertainment Corporation (HEL: ROVIO). The price of the acquisition deal would be as much as 683 million euros ($737.50 million), or 9.05 euros per share, paid in cash.

Playtika Interested in Acquiring Rovio

Notably, this is the second acquisition offer from Playtika to Rovio. On November 16, 2022, Rovio submitted an 8.50 euros per share proposal to the Rovio Board of Directors. Now, the new offer values each share of Rovio at 9.05 euros, or about 60% higher than the company’s closing price on January 19.

Apparently, Playtika is extremely interested in acquiring Rovio company which is best known for the Angry Birds franchise.

Playtika CEO Robert Antokol commented:

“We firmly believe the combination of Rovio’s renowned IP and scale of its user base, together with our best-in-class monetization and game operations capabilities, will create tremendous value for our shareholders.”

In September 2017, Rovio went public via an initial public offering (IPO) on the main list of NASDAQ’s Helsinki stock exchange, which valued the company at $1 billion. However, the company is now trading 50% below its public offering price. To improve its results, Rovio announced it had 10 new games in development last year. However, it is still having some setbacks. Therefore, the deal with Playtika could revitalize its business.

No agreements have been made between the companies, and Playtika’s press release mentions that ‘there is no assurance that any transaction will materialize or eventually be completed.’ Rovio declined to comment.

About Playtika

Playtika is an Israel-based digital entertainment company that focuses on the development and publication of mobile games. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms.

Currently, the company is under a restructuring process. In December, Playtika confirmed a 15% layoff of its entire workforce or 610 employees across Europe, Israel, and the US. Besides, it is closing some of its studios, including the Helsinki-based team Seriously, as a result of a global economic slowdown. As many as three games have been also shut, including strategy battler “Merge Stories”, farming sim “Dice Life”, and hidden object title “Ghost Detective”.

Last year, Playtika shared lost half in value. When it went public in 2021, its valuation totaled over $11 billion at a per-share price of $27. However, in the summer of 2022, its market cap was standing at $3.1 billion, with a share price of just around $8.61.

In 2022, Playtika was actively looking for a merger. It appointed financial advisor The Raine Group and law firm Latham & Watkins to pursue “a full range of strategic alternatives” which could include a sale or a merger. It almost got a deal with Joffre Capital, but the latter pulled out of the agreement citing management issues.

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Darya Rudz
Author Darya Rudz

Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.

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