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Rovio investment deal to value company at $1.2 billion

By Matthew Handrahan

Fri 12 Aug 2011 7:40am GMT / 3:40am EDT / 12:40am PDT

Sources say that Rovio is in negotiations with a major entertainment company

Angry Birds creator Rovio is negotaiting a deal for funding that would value the company at around $1.2 billion, Bloomberg reports.

Sources close to the deal say that the investment is from a company in the entertainment business. Rovio has already rejected offers from several other, similar investors.

Rovio intends to use the money to grow the Angry Birds IP into a multimedia franchise. An animated feature film is already in production, and Rovio is poised to launch the Angry Birds clothing and plush toy lines in more than 200 shops in China.

Last month, Rovio vice president Ville Heijari told Eurogamer that he saw the company's valuation "somewhere north of PopCap."

In a speech at the Fortune Brainstorm Tech conference this week, Peter Vesterbecka, head of Rovio Mobile, said that Rovio no longer regarded itself as a games company.

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Terence Gage Freelance writer

1,289 126 0.1


Seriously, there are probably a dozen videogame brands in the world which are worth $1.2 billion, and Angry Birds is really not one of them.

Edited 1 times. Last edit by Terence Gage on 12th August 2011 10:59am

Posted:5 years ago


I posted on FB today: "We are not a gaming company, aims to shoot for the moon North of Popcap (frankly I think it'll be chicken pie)" guess all their success is really going to the head.

I have nothing against Rovio, but its just so...incredulous in terms of perceived self value. the words of Danny Alexander. Cloud cuckoo land :)

Posted:5 years ago


Tommy Thompson Studying Artificial Intelligence (PhD), University of Strathclyde

110 0 0.0
I would be interested in seeing how their target audience reacts to their entertainment expansion. There's a big difference between paying 69p for a decent mobile game with a lot of content, to paying £X or $Y for clothing, plus toys and animated movie DVDs.

I cannot understand how an IP like Angry Birds can be valued so highly, it has neither the depth nor tenure.

Posted:5 years ago


David Bachowski VP Business Development, Babaroga

66 0 0.0
I've always thought that I was the most humble person in the world ever, but Mr. Vesterbecker takes the cake.

Posted:5 years ago

The whole situation reminds me of the "Moorhuhn" franchise.
Moorhuhn -> Corporate history

Edited 2 times. Last edit by Christian Kulenkampff on 12th August 2011 3:36pm

Posted:5 years ago


Tim Hesse Product Development Executive

22 0 0.0
I went to pick up my daughter at camp the other day and there were no less than six kids on the floor, with a huge stretch of papers next to each other drawing a game of angry birds...these were 4-6 year old kids; there is no deigning the IP has reach...

Posted:5 years ago


Germán Vázquez Executive Producer, Neggi Studio

37 17 0.5
Why would most comment still show so much denial on Rovio, I would agree with everyone that they are not a humble company as of late but the article states that they already got the negotiations going to value the company at 1.2 billion.

We can deny and say all we want but the investment seems like is going to happen and that they will value the company at over a billion dollars.

I can't understand either how can an IP like Angry birds will go for over a billion, maybe 500 or 700 million tops, but its happening so deal with it people.

Posted:5 years ago


Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,523 3,225 1.3
Germán, I think the problem is anger that capital is being wasted to some degree. A lot of that money could have been better spent on an IP or IP creator that has better long term value. Rovio is taking Angry Birds to the point of Brand Exhaustion and they have nothing else to fall back on. That's a bubble just waiting to pop.

Edited 2 times. Last edit by Jim Webb on 12th August 2011 4:58pm

Posted:5 years ago

@ German - lets say the birds get baked in a pie and collapse. This is like a volcanic eruption that will shit on all other overvalued/undervalued related game media. There is a risk of contagion if something goes spectacularly flat

Posted:5 years ago


Tim Carter Designer - Writer - Producer

640 370 0.6
Pump and dump. An old fashioned stock market play.

Angry Birds worth $1 billion+. How can they predict that? This is insiders pumping up the value and dumping.

Posted:5 years ago


Matthew Green Producer, Solar Studios Inc

36 0 0.0
what a fucking joke. issue fake user numb ers while a bot downloads/or registers 200 million times. I dont think a company owned download bot should count as unique downloads.

Edited 1 times. Last edit by Matthew Green on 13th August 2011 6:33pm

Posted:5 years ago


Matthew Green Producer, Solar Studios Inc

36 0 0.0
am i the only one that finds it less than credible that 1 out of 30 infants elderly and in betweens in all the third world countries on earth have downloaded angry birds? These guys learned from fakebook et all that it pays to make up user numbers. These are the times we live in. con men and liars are handed the treasures of the world just for being totally full of shit

Posted:5 years ago


Greg Sheldon Director, Grass Roots Group

2 0 0.0
Really sound like a bunch of jealous little kids crying cuz they didn't get their "fair" share of the candy. Ravio folks are no more con men and liars than anyone else in the industry. Whether by luck or by skill they struck gold with their IP and are taking it to the bank just like any of the rest of you would.

Posted:5 years ago


Matthew Green Producer, Solar Studios Inc

36 0 0.0
@greg your joking right? do you believe 1 out of every 30 humans on earth has downloaded angry birds? The only people jealous of rovio are those who put money above all else, and most of those people work on wall street not in the games biz.

Posted:5 years ago


Terence Gage Freelance writer

1,289 126 0.1
Rather than it being 1 in 30 people worldwide, I feel it's likely a far smaller number of people who have downloaded the game multiple times or downloaded each of its to date three (?) iterations. I mean, I myself have downloaded Angry Birds, Seasons and Rio on Android, and although I enjoyed the games I didn't feel the need to keep them once finished or revisit them.

It is a phenomenon though, and I doubt they've made up the figures (EDIT - I still don't think the brand is worth over a billion dollars though).

Edited 1 times. Last edit by Terence Gage on 15th August 2011 9:15am

Posted:5 years ago

To add: the numbers probably do not reflect the true unique users that have accessed the game. I.e anyone who downloads it counts as a unique users, and not how many times or how many versions on different devices. This will be a far better arbiter or true user base but less exciting to qoute.

Posted:5 years ago


Matthew Green Producer, Solar Studios Inc

36 0 0.0
I dont really give a fuck but those numbers dont add up. The shares will be dumped on suckers. Yech.

Posted:5 years ago


Greg Sheldon Director, Grass Roots Group

2 0 0.0
Does everyone really think it's "dumb money" being wasted by dumb inverstors? Come on folks! Anyone seen the turmoil in the markets. No totally stupid company has $billion plus to begin with and they certainly are not going to throw it down the toilet on some shit IP with no chance of a return on investment. How are software dev folks more qualified to make valuation calls on IP in the broader entertainment space than major players in the broad entertainment space?

Posted:5 years ago


Sergio Rosa "Somewhat-Creative Director", Domaginarium

69 50 0.7
Maybe all here sound like a bunch of jealous kids but I'm sure those kids know the irony of how Rovio think of themselves as the kings of the world, pretending they can even tell Nintendo how to run their business (remember GDC 2011?), and yet Angry Birds at first was nothing more than Rovio's last chance to stay afloat since the company was almost broke.

As people here have pointed out, Rovio is milking the Angry Birds cow (???) a lot more than they should. They say they have "a lot of creativity to come up with new stuff" and yet they only have one valuable IP, while they should use the resources they have to build more or else they will go bankrupt again when that cow runs out of feathers.

Posted:5 years ago


Murray Lorden Game Designer & Developer, MUZBOZ

213 77 0.4
Rovio should bring back "Darkest Fear"!!! I loved those games, especially the 1st and 2nd ones. Rovio have made some sweet games in their time, even back in the previous Java days. If anyone still has an older kinda color java phone, check out "Darkest Fear 2: Grim Oak". Awesome atmosphere, music, and gameplay...

[link url=

It's a sort of stealth, light and dark, puzzle-action game, with a story! Gasp!

Posted:5 years ago


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