Playtika, Angry Birds Maker Rovio Halt Merger Discussions
Mobile gaming company Playtika (NASDAQ: PLTK) and Angry Birds producer Rovio Entertainment announced today they halted prelude merger talks.
In January, Playtika revealed an increased, all-cash offer for the Suomi company, valuing it a $9.58 a share, or a 55% premium to the stock’s finally closure terms before the bid was publicized. That was after Israel-based Playtika offered Rovio $9.18 a share last-place November.
Rovio announced on Feb 6, 2023 that its Board of Directors has decided to commence a strategic reexamine and that, as component part of such review, Rovio has decided to go into into overture non-binding discussions with sure parties, including Playtika Holding Corp.,” according to a statement. “Preliminary discussions between Rovio and Playtika get at present ended.”
No reason was granted as to wherefore the acquisition talks ended.
Angry Birds Was Alluring to Playtika
Formerly a building block of Caesars Entertainment, Playtika was i of the first of all to offering free-to-play societal games on societal networks and wandering devices and has more than 35 billion monthly users. Its well-known games include Bingo Blitz, Caesars Slots, Slotomania, and World Series of Poker (WSOP) Social.
While those are well-known titles in the social gambling casino space, content is key inward this scene of action as consumer tastes work shift o'er time, likely explicate some of Playtika’s interest inwards the iconic Angry Birds franchise.
Angry Birds, which Rovio describes as “one of the biggest peregrine games and entertainment trademark success stories of all time,” could allay those concerns. Interestingly, that was the 52nd gamey produced by the Suomi company, which was on the brink of failure when it debuted the now-iconic franchise.
Angry Birds debuted inward 2009 and come to 500 1000000000 app downloads inwards 2011, and a one million million the next year. Some versions of the mettlesome feature in-app purchases, which are telephone exchange to the revenue thesis for some roving spirited makers. The in vogue(p) edition of the gamy isn’t considered “freemium” — industry lingo for loose premium.
Investors Punish Playtika
In January, an psychoanalyst criticized Playtika for boosting its offering for Rovio, citing perimeter dilution and untoward impacts to the buyer’s equilibrate sheet, among other factors.
That might imply that investors are relieved that the suitor is walking from the bargaining table, but the realness is different as Playtika shares slumped to a greater extent than 4% today on above-average volume. However, the shares are up 23.27% year-to-date.
The ended talks with Rovio German mark at least the endorse proposed dealing involving that didn’t come to fruition. Last December, tech buyout monetary fund Joseph Jacques Cesaire Joffre Washington announced it scrapped plans to acquire a controlling post inwards the gaming company.
Joffre highlighted internal issues at Playtika as intimately as problems with the marketer of the shares, Playtika Holding UK II Limited (PHUK II), as reasons for walking forth from the deal.
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