Angry Birds Maker Rovio’s Market Value Falls by 50%
The Angry Birds franchise was a golden goose for Rovio, propelling the developer to the top of the market, and the IP itself proving to be so successful that it managed to branch off into numerous other games with tie-ins to popular brands like Star Wars and Transformers, as well as getting its own animated series and CG animated full length feature.
However, it looks like the Angry Birds magic is starting to wane as it is revealed recently that Rovio has lost half of its market value after a lower-than-expected profits forecast, its stock price taking a 50% dive after the company shared its 2018 profits forecast.
According to Tech Crunch, Rovio generated $365 million in revenue in 2017, which is a 55% increase compared to 2016, but its latest earnings report saw the profits go down to $319 million. Rovio first had its IPO in October last year, where it was valued at $1.1 billion, a far cry from its current value, which is below $500 million.
Perhaps it is time for Rovio to start building other IPs aside from the Angry Birds brand. It’s still popular enough that they can coast on it, but it’s a mystery as to how long, especially now that they’re facing tough competition from other casual gaming juggernauts like Crash Royale and Candy Crush.