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Rovio halts discussions with Playtika with no deal in sight

The Israeli publisher had been eager to make a cash offer to buy the Angry Birds developer
Rovio halts discussions with Playtika with no deal in sight

Angry Birds developer Rovio and Israel-based publisher Playtika have halted their non-binding discussions regarding a potential acquisition.

Rovio entered talks with interested parties for an acquisition earlier this year as part of a strategic review, and likely due to repeated public offers by Playtika. These discussions have now ended, but it’s unclear how satisfactory it was for either side, only that Rovio will be continuing discussions with other interested parties as part of their ongoing strategic review.

Rovio stated that this would not be the end of their talks with interested parties however. “The Board of Directors of Rovio confirms that the preliminary discussions with Playtika in connection with Rovio's strategic review have now ended. The Board of Directors of Rovio continues its strategic review, including preliminary non-binding discussions with certain other parties, in order to reach the best possible outcome for Rovio and its shareholders.

“There can be no assurance that the strategic review and the preliminary non-binding discussions will result in any cash or other tender offer or any other transaction, or the pricing of any such possible transaction. Rovio will release further information at an appropriate time.”

What’s happening?

As part of this strategic review, Rovio has been reaching out to interested buying parties. The most prominent of which has been Playtika, who have not only made public offers to acquire Rovio but also increased their offer shortly after. This likely indicated significant interest on their part, encouraging Rovio to enter into a dialogue with them.

Although it may seem as if any deal has been called off, in-fact it remains open as to whether a potential Rovio/Playtika acquisition may go ahead in future as non-binding discussions typically cover a variety of details beyond just the money on offer. As part of Rovio's strategic review, and talks with other interested parties the discussions are still in progress.

For Playtika, an acquisition of Rovio would offer a big boost at a time when the company is restructuring and reorienting itself to cope with a somewhat slower mobile market. The company has called off any new development until the market corrects itself.