The company behind the popular Angry Birds games, Rovio Entertainment Oy, is apparently planning an IPO.
The news comes in a report from Bloomberg, and the IPO would give Rovio a value of around $2 billion. They will apparently raise $400 million from the IPO.
Rovio’s Market Strategy and Financial Growth
Rovio is apparently intending a local market listing for their IPO, as the company is based in Finland. In 2016, they saw their revenue increase by around 34 percent to $225 million. This significant growth can be attributed to several strategic moves by the company, including the diversification of their product offerings and the expansion into new markets.
The company released their Angry Birds movie in 2016, which played a crucial role in boosting their revenue and game sales. The movie was a commercial success, grossing over $350 million worldwide. This not only increased the visibility of the Angry Birds brand but also led to a surge in the downloads of their games. The success of the movie demonstrated Rovio’s ability to leverage their intellectual property across different media platforms, thereby creating multiple revenue streams.
Future Prospects and Market Speculations
Rovio has yet to confirm that they have an IPO planned. This is something that they have discussed in the past but only as a possibility. If the report from Bloomberg is correct, then the IPO could possibly take place sometime next month. The potential IPO has generated a lot of interest and speculation in the market. Analysts believe that the funds raised from the IPO could be used to further expand Rovio’s product line, invest in new technologies, and possibly acquire other companies to strengthen their market position.
The gaming industry is highly competitive, and companies need to continuously innovate to stay relevant. Rovio’s decision to go public could provide them with the necessary capital to invest in research and development, thereby enabling them to create more engaging and innovative games. Additionally, the IPO could also help Rovio attract top talent in the industry, as stock options are often a significant part of compensation packages in tech companies.
Moreover, the success of Rovio’s IPO could set a precedent for other gaming companies considering going public. It could potentially lead to a wave of IPOs in the gaming industry, as companies look to capitalize on the growing interest in gaming and entertainment.
In conclusion, while Rovio has not officially confirmed their IPO plans, the potential listing has generated significant interest and speculation. The funds raised from the IPO could provide Rovio with the necessary resources to continue their growth trajectory and maintain their competitive edge in the gaming industry. The success of their Angry Birds movie and the subsequent increase in revenue demonstrate Rovio’s ability to leverage their brand across different platforms, creating multiple revenue streams and ensuring their long-term success.
Source Bloomberg
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