Angry Birds owner mulls IPO to fund next chapter

Rovio Entertainment — the Finnish company behind the Angry Birds mobile games phenomenon — is planning an IPO as early as next month which could value the company at around $2bn (€1.7bn).

The company could raise about $400m from a local market listing, sources said. No final decisions have been made and the company could also choose to stay private for longer.

A listing would test investors’ appetite for entertainment software, a group whose shares have declined an average of 18% from their offer prices following IPOs this year. That’s because mobile game makers often struggle to replicate the success of initial blockbusters.

King Digital Entertainment, the creator of Candy Crush, was acquired for a 20% discount to its IPO price in 2015 amid revenue declines.

Rovio reported revenue growth of 34% for 2016 to €190.3m and earnings of about €17.5m compared with a loss in the previous year.

The company, like many game makers, has been searching for new growth after its initial success with the Angry Birds mobile game.

Proceeds from an IPO could help the company fund the Angry Birds Movie 2, planned for 2019. The company’s first film in the franchise, released last year, made about $350m in worldwide box-office sales.

Rovio is also focusing on fuelling demand for game titles such as Battle Bay and newer versions of Angry Birds.

Bloomberg