×
You will be redirected back to your article in seconds

‘Angry Birds’ Creator Rovio Sees Modest IPO Liftoff Before Shares Fall to Close Flat

UPDATED: Shares of Rovio Entertainment — the games and entertainment company behind “Angry Birds” — rose as much as 7% in the company’s stock-market debut Friday, before closing the day at the IPO price.

Rovio shares began trading Friday under the ticker symbol “ROVIO” on the Nasdaq Helsinki exchange, in an initial public offering that yielded 30 million euros ($35 million) in gross proceeds to the company.

After pricing the IPO at 11.50 euros per share, Rovio stock peaked at 12.34 euros before falling later in the day. Shares were trading at 11.55 euros per share at 3:15 p.m. in Finland, up 0.4% from the IPO price but below the 12-euros-per share open. [UPDATE: Rovio shares closed at 11.50 euros per share, with 51.2 million shares changing hands.]

With the IPO, the Finnish company has a current market cap of about $1 billion — while Rovio’s owners reportedly had been hoping for a valuation of $2 billion ahead of the public offering. The company said in announcing the the proposed stock sale that it intends to use funds raised in the IPO to acquire other game makers.

“We have a clear will to be a consolidator, and we are in a very good position to do that,” vice chairman Kaj Hed, who remains Rovio’s largest shareholder, said in an interview Friday with Reuters. Kaj Hed — father of former Rovio CEO Mikael Hed and uncle of co-founder Niclas Hed — controls Trema International Holdings, whose ownership stake in Rovio dropped from 68.5% to 36.6% with the IPO.

Rovio, founded in 2003, had a huge early success with the “Angry Birds” game but in recent years the company has seen declining revenue and profits.

“Angry Birds” first launched as a mobile game in 2009. Today, Rovio develops and publishes multiple mobile games and produced 2016’s “The Angry Birds Movie” with Sony, which grossed $350 million at the box office worldwide. Rovio is developing a sequel slated for September 2019 release. Under the company’s revised strategy, Rovio does not plan to invest any of its own capital in the production of the movie.

For the 12 months ended June 30, 2017, Rovio reported revenue of 152.6 million euros (about $180 million at current exchange rates), up 94% from the year-earlier period, and a profit of 13.3 million euros ($16 million). The company’s games business unit accounted for 79% of revenue and brand licensing represented the remainder for the most recent 12-month period.

The company’s mobile games have been downloaded more than 3.7 billion times as of the end of June 2017, and they had on average 80 million monthly active users during the second quarter of 2017, according to Rovio. Recent game launches include “Angry Birds Evolution,” “Battle Bay” and “Angry Birds Match.”

In 2014, U.K. mobile game publisher King Digital, best known for “Candy Crush,” went public with an initial valuation of $7 billion — and its IPO bombed. King’s shares never rose above the IPO price, and Activision Blizzard acquired the company in a $5.9 billion deal in 2015.

More Digital

  • FilMart: Viu Uploads 'No Sleep, No

    FilMart: Viu Uploads 'No Sleep, No FOMO' Reality Show for Millennials

    “No Sleep No FOMO” is an eight-episode pan-regional travelog show that Asian streaming firm Viu hopes will help it win over more millennial generation audiences. It harnesses the potential of local social media celebrities and their 12 million followers. The show features “Running Man” star Kim Jong-kook, Korean musician Eric Nam and Singapore actor Paul [...]

  • ‘Wonder Park’ Tops Studios’ TV Ad

    ‘Wonder Park’ Tops Studios’ TV Ad Spending for the Fourth Week in a Row

    In this week’s edition of the Variety Movie Commercial Tracker, powered by the TV advertising attention analytics company iSpot.tv, Paramount Pictures claims the top spot in spending for the fourth week in row with “Wonder Park.” Ads placed for the animated film had an estimated media value of $5.18 million through Sunday for 1,718 national [...]

  • Chinese Tech Firm Huawei Seeks Content

    Beleaguered Chinese Tech Firm Huawei Seeks Content for Expansion Into Southeast Asia

    One of the most surprising first-time attendees at FilMart is Chinese tech giant Huawei, which has come to Hong Kong to acquire the video content it needs to support its strategy of expansion into Southeast Asia. The company is currently embroiled in a PR nightmare as it defends itself against accusations that its equipment could [...]

  • Canadian Animation Shop Guru Studio Makes

    Canadian Animation Shop Guru Studio Makes Moves in China

    Guru Studio, an award-winning Toronto-based studio, is keen to get a slice of China’s animation market, which has been growing quickly. “China has the single biggest TV audience in the world and is the second big economy. It’s a natural move for us to build a brand in China,” said Louise Jones, Guru VP of [...]

  • Netflix's Newest Interactive Animated Kids Show

    Netflix Announces New Interactive Animated Kids Show 'Battle Kitty'

    Netflix is doubling down on interactive content for kids. The streaming service announced a new interactive animated show on Tuesday dubbed “Battle Kitty” from Matt Layzell. The company didn’t share a premiere date for the show yet. “Netflix has given me the incredible opportunity to help change how young people see themselves,” said Layzell. “Like [...]

  • stream march madness 2019 online free

    NCAA Tournament: How to Stream March Madness Online

    The rankings are in, and the 68-team field is set. March Madness is officially upon us, and if you want to catch the action from home, from the office, or on-the-go, there are a couple ways to stream March Madness online for free. The first game kicks off today, and the tournament runs until April [...]

  • Google Stream Detailed, Named Stadia

    Google's Stadia Aims to Turn Any Screen Into a Powerful Gaming Console

    Stadia is Google’s game streaming service that is designed to let you play high-end games on most modern screens — be they phone, laptop, tablet, computer or TV — with very little download time and no loss of fidelity, the company announced Tuesday at the Game Developers Conference. The service is launching in 2019. Cost [...]

More From Our Brands

Access exclusive content