Ten months after splurging on Angry Birds maker Rovio, how has Sega Sammy’s $775M purchase played out? What can the combined entity’s latest moves tell us about the future of the partnership?
Sega bought Rovio 10 months ago to broaden its IP portfolio and strengthen its foothold in mobile. As we approach the one-year mark since the acquisition — you can read our original coverage of it here — we wanted to take a look back at the deal, examine the early returns, and envision the future of the combined entity.
On the surface, the acquisition appears to have been a boon for Sega. In its recent earnings report, the company announced it had already reached its medium-term targets for next March a full year ahead of schedule, posting a 21.4% bump in year-over-year net sales and decade-high marks in both operating and ordinary income.
However, Rovio’s flagship mobile titles have continued a steady decline that precedes the acquisition. Much of Sega’s recent financial outperformance can be chalked up to improved back catalog sales, growth in its pachinko and pachislots business, and strong debuts from Like a Dragon: Infinite Wealth and Persona 3 Reload.
