Rovio Entertainment, the maker of popular game Angry Birds, is looking to go public.
Game to film
What was once just a popular app became a toy, merchandise and even a film. In fact, the film did so well that it rescued the company out of financial peril and a sequel is due out soon.
$1bn
That’s how much Rovio values itself at. And it’s half what investors were expecting.
But by going in low, the company has perhaps learned from previous tech firms’ IPO mistakes.
Remember?
Facebook and Twitter both had rocky starts with expensive market debuts.
This valuation gives Rovio some breathing room from expectant shareholders, as it uses its IPO to fund staff wages, future acquisitions and shore up debt.
Rovio is also looking good compared to those 2 because it’s actually bringing in the dough before going public: revenue was up almost 100% last quarter.
Pragmatism
When freemium games like Candy Crush Saga stole market share, Rovio released a sequel that was free to download yet offered in-app purchases. Although it was slow to meet this change in market pricing model, it shows the firm is willing to adapt. And its spin off games are a hit.
Also, the company isn’t afraid to make difficult decisions: it significantly cut headcount in a tough 2015.
But
“They need to find a way to diversify their brand portfolio,” says one industry analyst.
After all, no stockholder wants to invest in a fad.
[…] the rich and boost immigration. Talking of boosts, the company behind Angry Birds is looking to boost growth by going public. That’s also the rationale behind the Nordstrom family wanting to take their department store […]
[…] the rich and boost immigration. Talking of boosts, the company behind Angry Birds is looking to boost growth by going public. That’s also the rationale behind the Nordstrom family wanting to take their department store […]