SI
SI
discoversearch

   Technology StocksZynga, Inc.


Previous 10 
From: Glenn Petersen9/6/2017 7:03:54 AM
   of 340
 
Mostly OT to Zynga:

An Angry Birds Empire: Games, Toys, Movies and Now an I.P.O.

By CHAD BRAY
New York Times
SEPT. 5, 2017



Rovio Entertainment’s “Angry Birds” game has led to a series of sequels, a line of toys and clothing, and a feature film. Credit Columbia Pictures
_______________________________

LONDON — The digital world is littered with one-hit wonders — companies that tried to turn a single successful brand into a big-time business only to be eclipsed by changing technology and consumer tastes.

Zynga, which once paraded sheep in Times Square to celebrate a spinoff of its highly addictive FarmVille, is worth far less than it was when it went public in 2011. King Digital Entertainment tried to build an entire Candy Crush empire, but sold out to a traditional game maker two years ago.

The maker of Angry Birds, Rovio Entertainment, hopes to defy that trend.

Rovio found success in a smartphone game that pitted a brightly colored feathered flock against an army of green pigs, spawning a series of sequels, a line of toys and clothing, and a feature film. Now, the Finnish company is planning an initial public offering that could value the company at roughly $2 billion, in a test of whether investors will find favor in a single franchise and whether the business can evolve.

Rovio helped usher in the rise of smartphone games, building a juggernaut around the Angry Birds brand. In the game, released in 2009, users fling birds at elaborate structures built by pigs that have stolen their eggs.

The game’s idiosyncratic concept now has several spinoffs that rank among the most downloaded apps on smartphones and tablets. Rovio’s titles have been downloaded 3.7 billion times, the company said.

“The Angry Birds Movie” grossed around $350 million worldwide. A sequel is planned for release in September 2019.

Rovio has ridden the wave of a rapidly expanding mobile gaming market. The industry’s worldwide revenue was about $16 billion in 2012 and is forecast to top more than $50 billion this year, according to data from SuperData Research, a data provider on the games industry.

But Rovio now needs to prove it can profit beyond the success of Angry Birds. Its games business, which includes the original Angry Birds and more than a dozen spinoff titles, accounted for 79 percent of its revenue in the 12 months through June.

“They need to find a way to diversify their brand portfolio in the future,” said Atte Riikola, a research analyst at Inderes in Helsinki, Finland. “They have had problems in their history when trying to diversify, so it won’t be an easy task to do.”

The company has done a good job creating offshoots of its flagship game, like Bad Piggies and Angry Birds Match. The company has also introduced several non-Angry Birds titles in recent years, including a puzzle game called Fruit Nibblers and a game tied to the pop singer Shakira.

“The hardest part in the app market is to find the users, to get people to download your game,” said Tero Kuittinen, chief strategist at Kuuhubb, a Finnish company focused on lifestyle and mobile video game applications. “If you have a well-known intellectual property — you have something that is instantly recognizable, James Bond, ‘The Wizard of Oz,’ any kind of property like that — it helps you a lot. Why wouldn’t they leverage Angry Birds?”

But it is still unclear whether Rovio has the framework or model to fuel innovation and expand beyond its main brand. The mobile gaming environment is especially competitive.

“At a certain stage, you will need a formula for more efficient innovation success,” said Mark DiMassimo, the chief executive and chief creative officer at the advertising agency DiMassimo Goldstein. “You’re going to need to get to winners faster than other folks, more efficiently than other folks. If you don’t, you’re going to be on the losing end of the category.”

The announcement of the public offering marks a turnaround for Rovio, which struggled financially in the years after the initial release of Angry Birds. The company, which started out by selling its games, was caught flat-footed as consumers gravitated to games offered through a so-called freemium model, in which players download the game for free and pay for additional features. Rovio has since switched from paid apps to free downloads of its games.

Mikael Hed, a co-founder, stepped down as its chief executive in 2014, and the company announced plans to cut nearly 40 percent of its work force the next year. (Mr. Hed is still executive chairman of Rovio Animation, which helped bring “The Angry Birds Movie” to the big screen last year.)

Rovio returned to a profit in 2016 and reported revenue of 191.7 million euros, or about $228 million, last year.

Rovio is the latest game maker to turn to the public markets after becoming a cultural phenomenon, following in the footsteps of Zynga and King Digital.

Zynga, the company behind not only FarmVille but also Words With Friends, was valued at $7 billion when it went public in 2011. Its shares are now trading at a third of the initial price.

The company rose to fame with social games played on Facebook, but it was slow to recognize the move to mobile gaming. While it has since shifted its focus, the company has not been able to repeat its earlier success.

King Digital, the Swedish maker of Candy Crush, went public in 2014, but was sold for about $5.9 billion a year later to Activision Blizzard. It sold at a discount to its initial listing price as it struggled to replicate the success of its biggest hit.

The founder of Supercell, a Finnish rival behind the hit Clash of Clans, opted not to pursue an initial public offering, instead selling a 51 percent stake to the Japanese telecommunications giant SoftBank in 2013 for about $1.5 billion. Last year, the Chinese internet giant Tencent paid $8.6 billion for a controlling stake in Supercell.

Rovio said that the aim of the initial public offering was to help it carry out a growth strategy, and that it would use its shares for possible acquisitions and rewards to its employees.

Rovio said the initial public offering would consist of the sale of stock by its main shareholder, Trema International Holdings, and other shareholders. The company is also seeking to issue additional shares worth €30 million, or about $36 million, in the offering.

“That’s really the question for the market around this I.P.O.: To what extent do we believe the company can exploit its existing intellectual property, and to what extent can it go again and deliver another big hit?” said Will McInnes, the chief marketing officer at Brandwatch, which monitors social media trends.

nytimes.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Glenn Petersen who wrote (338)9/16/2017 6:06:03 AM
From: Glenn Petersen
   of 340
 
Rovio found success in a smartphone game that pitted a brightly colored feathered flock against an army of green pigs, spawning a series of sequels, a line of toys and clothing, and a feature film. Now, the Finnish company is planning an initial public offering that could value the company at roughly $2 billion, in a test of whether investors will find favor in a single franchise and whether the business can evolve.

Apparently not:

Angry Birds IPO expected to value parent Rovio at $1 billion

by Katie Roof
TechCrunch
September 15, 2017



Remember Angry Birds? Well, apparently enough people are still playing it to justify an IPO.

Rovio Entertainment, the Finnish parent of the popular smartphone game, is getting ready to go public on the Helsinki Nasdaq in two weeks. And it’s set the price range for an IPO that would value the company at about $1 billion, a lot less than the more than $2 billion they were said to be hoping for.

But it will still be a “unicorn” if it goes public at the €10.25 to €11.50 per share that the company is targeting. The IPO will raise about €30 million.

Angry Birds apps have been downloaded 3.7 billion times since it was launched in 2009. It was able to leverage the success of the game and turn this into “The Angry Birds Movie” last year.

The company has raised at least $42 million in equity funding from Accel, Atomico, Felicis Ventures and others.

techcrunch.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Glenn Petersen who wrote (339)9/30/2017 8:41:01 PM
From: Glenn Petersen
   of 340
 
After a 4% pop, Rovio closes at a lackluster €11.50, level with its IPO price

by Ingrid Lunden ( @ingridlunden)
TechCrunch
September 29, 2017



Rovio, maker of the Angry Birds gaming franchise, saw a small pop of 4.3 percent in its first day of trading as a public company, but like the very birds that get catapulted in Rovio’s original blockbuster game, the rise was not to last.

After pricing its IPO at €11.50 per share — the top of its range — to raise €30 million, today the stock opened on the Nasdaq Nordic exchange at €12.00, up 4.3 percent. But then, after morning trading took it as high as €12.34 a share, Rovio ( trading as ROVIO) has fallen down to hovering around the same price it was yesterday evening, €11.50/share. And it’s actually dipped below that, going as low as €11.35 at one point. Its current market cap is $1 billion (€896 million).




Rovio had said yesterday that its initial offering price of €11.50 was oversubscribed and valued it at $1 billion, although previously the company had hoped for a $2 billion valuation. It appears that the U.S. waking up has done little to boost trading so far. Rovio’s 37,073,010 IPO shares were offered to private individuals and entities in Finland, Sweden and Denmark and in private placements to institutional investors in Finland and internationally.

Rovio counts the U.S. market as one of its very biggest — the company said that “most” of its revenue comes from North America and Europe — and it also has a high profile there. But unlike Spotify, another company based out of the north of Europe that counts the U.S. as a key area for current business and future growth, Rovio chose to list closer to home.

Rovio once had designs to become the next Disney. But the fortunes of gaming companies rise and fall with the popularity of their titles, and that has impacted that lofty goal. (Indeed, you could argue that this has been a sticking point for some other gaming companies that have gone public in recent years, such as King — which eventually sold to Activision Blizzard — and Zynga. Their economics do not necessarily follow those expected of public companies.)

Rovio has had a number of strong follow ups to the original Angry Birds — it had three mobile in Apple’s top 100 highest grossing apps over the summer, for Angry Birds Blast, Angry Birds Evolution and Angry Birds 2 — but no new brand so far has quite broken through as a blockbuster in quite the way as the original Angry Birds did.

According to Verto Analytics, the Angry Birds franchise (comprising all the titles) has seen its monthly US visitors over the age of 18 tripled over the last year. There are now 5.9 million visitors compared 2 million in July 2016. But while Angry Birds (2.1 million visitors) and Angry Birds 2 (1.4 million visitors) have grown respectively by 351 percent and 128 percent, Angry Birds is down from a peak of 3 million earlier this year.

“Even the most successful Angry Birds titles still lag well behind flagship offerings from their biggest rivals: King’s Candy Crush Saga has 10.2 million monthly uniques and Supercell’s Clash of Clans has 5.6 million,” noted Connie Hwong, of Verto, who also questions the model of building a number of games around a single brand.

“King and Supercell have exercised greater restraint in rolling out expansions or sequels to their existing mobile games franchises,” Hwong wrote. “Candy Crush has a handful of sequels while Clash of Clans has just one spinoff, Clash Royale. Is a smaller, more carefully edited catalogue of game titles a better bet for mobile game companies?”

Rovio has been right-sizing in a different way: after investing in a number of areas in its “Disney” heyday, the company has since pulled back on many of its most ambitious ventures outside of games (such as amusement parks) in favor of a licensing model, where a third party takes on the investment and risk of new projects.

Other moves in the future for the company will include more geographic expansion. With China currently the world’s biggest market for gaming, Rovio is focusing its strategy there.

“We are working on a number of high profile potential partnerships in China,” Rovio’s EVP of games, Wilhelm Taht, said in an interview with TechCrunch last month. In China, foreign companies need to align with a local company in order to build a business in the country. “We have gone through several potential partnerships and with 600 million downloads in the region already, we will try to strengthen the China business.”

The company reported revenues of €266 million ($314 million) for the year that ended June 30, 2017, with an operating profit of €29,483 ($35 million).

We are updating this story with more detail and price changes throughout the day.

techcrunch.com

Share RecommendKeepReplyMark as Last Read
Previous 10 

Copyright © 1995-2017 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.