Rovio, the game developer behind the hit mobile game “Angry Birds,” is getting some big news this week. The Finland-based startup is reportedly planning its first IPO (initial public offering) in the Nasdaq stock exchange.
According to Bloomberg, the Espoo, the Finland-based company is planning to launch its IPO as early as next month. The planned IPO could value Rovio at a whopping $2 billion. Additionally, the IPO might also "raise around $400" in fresh capital, Bloomberg added.
Reports said that the IPO proceeds could help Rovio fund its upcoming second film “Angry Birds Movie 2,” which it plans for release on 2019.
The company’s first made film, “Angry Birds Movie 1,” has made around $350 million worldwide.
However, Rovio could face a tough IPO environment for its mobile entertainment business. Reports said that many of those companies that have launched their IPO have seen their stock prices fall off in double figures. So expect Rovio to face some uphill battle on the first day of its IPO.
Rovio, the Finnish game developer
CrunchBase describes the company as being founded in 2003 and based in Espoo, Finland, "Rovio Entertainment is an entertainment media company that develops, publishes and distributes video games in the market." The Finnish company is well-known in the gaming circle for its mobile game series “Angry Birds.” Additionally, the company has already launched several games under the “Angry Birds” franchise for the various gaming platforms.
In May 2012, the company announced that its popular mobile gaming series has finally reached its one billionth download. In July 2012, the company signed a partnership with gaming giant Activision to bring and distribute the first three “Angry Birds” titles to the gaming market. This collection was named the “Angry Birds Trilogy” and was released to the gaming market in September 2012.
Since the release of its popular mobile game in 2009, the company has expanded its business to include movies and other games. The company has realized that it could not solely rely on its mobile game for revenue and market growth. The release of its first made movie in 2016 has also helped increase its revenues.
The company has also gained the attention of some of the most notable investors and venture capitalists.
These include Accel Partners, Atomico, Felicis Ventures and European Investment Bank (EIB). In March 2011, the company has received around $42 million in its Series A funding round led by Accel Partners, Felicis Ventures, and Atomico.
In addition to its funding rounds, Rovio has also made several acquisitions in the past couple of years. The company made its very first acquisition in October 2011, when it acquired the Helsinki-based animation studio Kombo. Rovi has bought the animation studio to produce a series of short videos, which has been released in 2012. The company made its second acquisition in March 2012, when it bought Futuremark Game Studios, the gaming arm of the benchmarking company Futuremark.
Rovio as a takeover target
Last year, news came out that Chinese giant Tencent was exploring a possible $3 billion takeover bid for the Finnish company, as well as Rovio may consider an IPO. The Finnish company has also claimed that a stock exchange listing in the future could be possible in order to support and fuel its continued growth and expansion in the gaming and entertainment market. As for Tencent, the Chinese giant has not made any further comment about the acquisition story.
The Chinese investment giant is known in the financial circle for its investment in the media and entertainment space. Tencent already owned a majority holding in Finland’s other prominent game developer Supercell, Reuters reported, so the news about Tencent looking to acquire Rovio may no longer come as a big surprise to everyone. This is possible, given the financial strength and the current business strategy of the Chinese investment giant.
