Gaming monopolies proceed to develop! In 2022 alone, a number of main online game firms merged by means of groundbreaking offers spanning billions of {dollars}, together with Take-Two’s acquisition of Zynga, Microsoft’s continued bid for Activision Blizzard, and Sony’s buy of Bungie. Now, Israeli social gaming firm Playtika has prolonged a $735 million provide to amass Finland-based Rovio, identified for the notorious Offended Birds franchise.
Whereas the provide is non-binding, information of the potential merger has triggered Rovio shares to leap in worth. Regardless of the bump, Playtika’s €9.05 ($9.74) per share bid continues to be at a horny premium.
“Pursuant to its fiduciary duties, the board of Rovio continues to discover all strategic alternate options to be able to attain the very best final result for Rovio and its shareholders,” the corporate mentioned in an announcement. “There might be no assurance that the strategic evaluation and the preliminary non-binding discussions will end in any money or different tender provide or another transaction, or the pricing of any such attainable transaction. Rovio will launch additional info at an applicable time.”
Playtika’s bid follows its latest company-wide consolidation and restructuring effort that included a layoff this previous December of 600 staff. Whereas this might be a easy refocusing effort and never a mirrored image on the corporate’s monetary well being, extending practically $1 billion {dollars} after such a large downsizing might spell hassle down the road.
The latest uptick in main acquisitions, not simply in gaming, however your complete leisure house, begs the query: ought to builders proceed to merge and develop freely, or might these mergers result in troublesome monopolies that stifle impartial creativity?
Cybersecurity specialist by day, investigative journalist by night time.
