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Rovio in talks with several investors for Hatch streaming funding boost

Angry Birds developer wants extra investment for its subsidiary, while taking losses off its books may appease investors
Rovio in talks with several investors for Hatch streaming funding boost
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Rovio is already in talks with several investors to sell stakes in its mobile games streaming subsidiary Hatch Entertainment.

In February the company noted in its Q4 financials that it was seeking to reduce its 80 per cent shareholding in the company.

Rovio CEO Kati Levoranta said the firm was willing to reduce its ownership to below 50 per cent - effectively losing control of the company.

Sale discussions

Bloomberg reports that discussions are already underway with investors to bring in extra funds on top of the $19 million the Angry Birds developer has already provided.

Hatch currently remains unprofitable and has had a negative impact on Rovio's earnings. The new investment will likely help appease Rovio shareholders, and is needed to boost Hatch's portfolio of streamable games, which includes Monument Valley, Hitman Go and Chameleon Run, and sign new partnerships.

Recently the company sealed a deal with US mobile network Sprint to run on its streaming platform on the firm’s 5G service.

Hatch co-founder and chief commercial officer Vesa Jutila also said that by Rovio dropping its majority holding in the company, it would make it easier to find new partners.

“We can’t be the subsidiary of one studio if we seek to become a global brand with games from all the top studios,” said Jutila.

“It’s important for our partners that we’re not part of Rovio, but an independent service - a platform where they can safely deliver their games.”