Happy shareholders?

In January there was news about Playtika wanting to purchase Rovio, the maker of Angry Birds, for $810 million even if the offer was non-binding. Those discussions apparently fell apart, but now the Wall Street Journal is reporting that Sega is expected to offer about $1 billion for Rovio next week.

This seems to be the end result of a strategic review (a.k.a. “can we sell the company at a good price?”) that Rovio started in February, after having received the Playtika interest in January.

It seems like the valuation of Rovio would be in the range of 2.85x sales and the $1 billion price would be about the same as Rovio’s price at its initial public offering in 2017. Creating shareholder value after an IPO as a public company is hard.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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