A new report about Zynga says the social gaming company tried to buy Angry Birds-maker Rovio for about $2.25 billion but it was rebuffed. Who would have thought that a bunch of little pigs and pigs could be worth so much?
The acquisition attempt hasn’t been confirmed by Rovio or Zynga but it makes sense on the surface, as Rovio would give Zynga an extremely popular franchise in Angry Birds and it would give it more expertise in the rapidly-growing smartphone gaming market. Rovio also reportedly raised funds at a $1.2 billion valuation, so roughly double that also seems about right for an outright acquisition.
While that would have been a nice chuck of cash for Rovio, I wouldn’t be surprised if it thinks that it will be worth more one day. Rovio is not a flash in the pan, as it had created 52 mobile games before Angry Birds hit the big time and it truly believes that the franchise can be this generation’s Mario. As crazy as it seems, that may not be out of reach.
I’ve been following Rovio for while now and even got a tour of its headquarters in Finland and I’m struck by how intelligently it has expanded the Angry Birds brand. The game itself is still a blast to pay and the company’s ability to adjust the business model for platforms like Android show that it can be flexible. When you also factor in how well it’s doing in China, the potential for merchandise and movies, you start to get a rosy outlook on Rovio’s future.
We’re also seeing a massive shift in the portable gaming market, as the iPhone and other smartphones will likely outdo standalone portable game machines in terms of marketshare and dollars spent. Rovio is well positioned to take advantage of this shift.
[Via New York Times]