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Angry Birds maker Rovio values itself "north of PopCap"

Thu 14 Jul 2011 8:01am GMT / 4:01am EDT / 1:01am PDT
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But admits there's never "been a relevant discussion of whether somebody is going to buy us"

Angry Birds creator Rovio has said that it values its own business higher than the $750 million EA paid for PopCap.

Speaking to our sister site Eurogamer.net, VP of franchise development Ville Heijari said that the company has had preliminary acquisition talks but nothing that has developed into serious offers.

"We've set the bar pretty high from early on, because we really think we have a lot of opportunities with our Angry Birds IP and there's a lot of creativity at the studio beyond Angry Birds. It was never a strategy here to quickly cash in on anybody who comes waving a wad of cash our way," he said.

"But the valuation from our point of view is somewhere, I dunno, maybe north of PopCap."

He added that despite a number of spin-offs to the Angry Birds series, Rovio isn't interesting in milking the franchise and is keen to create new IP as well as continue to grow the business.

"About a year ago, in the summer of 2010, Angry Birds was already quite successful. At that point it started to look like a really, really feasible and desirable IP," continued Heijari.

"So we had a lot of enquiries from many, many different parties. But we've had an overall strategic goal of growing this company and moving into different areas of business beyond games. I don't think there's ever been a really relevant discussion of whether somebody is going to buy us."

13 Comments

Fazi Zsolt
Game Designer

18 8 0.4
The problem with Rovio is that they have only one smash hit product, not two not three but one. So they rely on this ongoing craze for their smash hit product and build everything on it.
One of the problem I see is that it's a roller coaster ride. Today your up, but tomorrow you might be down or even crash. Which would leave them where ? might I ask.
So they say they don't want to cash in on Angry Birds, but they do admit that it's their only successful IP. In fact the way I see it is that they are cashing in as hard as possible, which I believe is fair. Since you never know in this industry when your ride is over, so better make the most of it.
Finally what disturbs me the most, is that in the past 2 years, since they launched angry birds, they failed to launch anything new. Only thing they released were just eye popping updates, basically same brick, in different wrapping.
So it makes me wonder if their bubble will pop or not..

Edited 2 times. Last edit by Fazi Zsolt on 14th July 2011 9:16am

Posted:3 years ago

#1
I'd agree with that - Popcap have shown that they are capable of delivering top quality hit games again and again. Rovio haven't done that yet, and I really can't imagine anyone paying >$750m for a single IP.

Posted:3 years ago

#2

Brian Baglow
Head of Interactive Entertainment

9 0 0.0
Crazy Frog?

Posted:3 years ago

#3

Tomas Nevrtal
Senior AI Programmer

5 0 0.0
Mr Heijari is just doing his job and trying to increase the value of the company in eyes of potential investors. It's PR, not a business analysis.

Posted:3 years ago

#4
Yeah, there's Angry Birds craze right now, but PopCap was propably safer bet of the two, with its track record of successful games. and Tomas got a point there :-)

Posted:3 years ago

#5
Rovio = One trick parrot.

seriously, how much angry birds can you play? Rovio better diversify instead of resting on any avian laurels

Posted:3 years ago

#6

Kingman Cheng
Illustrator and Animator

952 180 0.2
And I was going to say one trick pony Dr. Wong. :P

Think they're a little ahead of themselves (in their head).
Show us you can deliver more and better.

Posted:3 years ago

#7

Terence Gage
Freelance writer

1,288 120 0.1
I think I'm going to plagiarise a Flash game and then value myself at a billion dollars after a couple of years too...

Posted:3 years ago

#8
brings new meaning to snake oils man, in the banging on your drum category.
The wording did not come out as eloquent as Terence's deprecating commentary though.
:)

Posted:3 years ago

#9

Terence Gage
Freelance writer

1,288 120 0.1
Why, thank you. I don't know why, but intense cynicism tends to bring out the best of my grammar and vocabulary...

Posted:3 years ago

#10
heh heh. If you're at Develop Brighton, i'll be wandering in/out of lectures on Wednesday (although traditionally the hiton has naff air conditioning)

Posted:3 years ago

#11
Apparently, Rovio wants even more money than they got in last investor round: [link url=http://allthingsd.com/20110712/angry-birds-aims-to-hit-1-billion-downloads-perhaps-grab-even-more-venture-money/?utm_campaign=JoaoLuisC&utm_medium=Twitter&utm_source=SNS.analytics
]http://allthingsd.com/20110712/angry-bir...[/link]

Yes, they did copy existing game(s) and "just" made their own version. But then again, they obviously did it better than anyone before them. It's not like someone else couldn't have done the same earlier. But no one did. I admit I'm a bit jealous at Rovio, in a good way. Hopefully our company will one day be able to achieve even 1% of their sale figures for some of our games.

I do hope that they don't burn all their cash on highly paid career execs and bloated organization. Wouldn't be the first time.

Edited 1 times. Last edit by Kim Soares on 15th July 2011 8:00am

Posted:3 years ago

#12
He who does it best wins?

Posted:3 years ago

#13

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