Story Rovio worth 5 billion pounds Thats ridiculous How can they be worth that? FI so Then I will be very rich indeed
honestly i know nothing about how tech companies are valued. but to me it seems like a lot of companies are said to be worth way more than they actually do. BUT! rovio probably make a LOT of money from the AB franchise and the trademarks probably have a huge potential for revenue so yeah i don't know if 5 bil is realistic or not but a big amount they sure are worth it. i own all 4 versions of angry birds for the ios THEY ARE ALL GREAT GAMES especially the older version (original and seasons) with each covering 100s of levels by now after numerous updates and all. so i'm with Hodapp here, a big appluase to Rovio.
They have their games not only on mobile but also consoles like PSP etc. They have toys, t-shirts, tons of different things. Hell my son even has a pair of Angry Birds headphones. It all adds up to... a lot.
Considering Instagram was bought for $1 billion, I can understand that. But the thing is that Angry Birds is just a fad, and like all fads it will eventually fade out. So far Rovio hasn't really proven that they can create another hit title outside of the Angry Birds franchise. The games will still exist, but the surrounding popularity (candy, clothes, plush toys, etc.) will die off in the next year or so. See the Pokemon franchise for an example. It still exists today, but has fallen far from its former popularity. The games still exist but you don't see pikachu dolls in every store window anymore.
It's a fad but it's a huge one. In addition to the what? Hundreds? Of knockoff games out there, I actually see knockoffs of these in stores constantly. The merchandise for an iOS title is actually profitable enough that companies are making money selling cheap imitations. That's impressive. It's also referenced regularly on television and in movies. I'm not even an angry birds fan btw. I only finished the first one. I just get bored with it.
@pink: congrats on your riches.. i hope you live happily ever after in your imaginary castle... cheers.. of course i don't understand how a company who did earn "only" $70 million in 2011 could be worth $9 billion.. i mean thats 70 vs 9000 ... well i apparently don't understand a thing about imaginary worth being created out of thin air.. *shrug*
No-one have any memories of the past? Never heard of the bubble effect? It happens in the past (internet bubble anyone, but what about the housing market all other the world too: USA, Spain... even China) and it is still happening this time again with "social/internet/game" companies. Actually, this time, it is going to be worst because now companies are "worth" billions out of the blue instead of just 100's of millions. It is going to hurt badly for the industry when it all blow up (and it will). JC
Facebook only? Is it worth doing a IOS game4 or can you do the sAme as Rovio jsut doing a Facebook game?
Net worth and profits are different things. Net worth includes equity, brand name, trademarks, assets, etc. Profit is all income minus all the expenses. Considering that they got NASA to feature in an ad for them says just how big they've gotten. On top of that, it would've cost a pretty penny too. Sure, no one would be insane enough to pay $9b for EVERYTHING Rovio has, but in theory that's what everything they have is worth. Including intangible things like trademarks. Of course, the worth will go down as soon as the strength of the brand diminishes (and from then on it will drown exponentially) but for now they're the hot thing.
Considering the popular of "Angry Bird" name for now, I think it's still worth it. And I agree with Echoseven, the price will goes down as soon as the visibility of the name can stay big just like now. Ex: Even Popcap, for me a big name, but once they come to EA, the price is not that high like Rovio.
well all this is "imaginary".. but income is not.. thats what they earn after tax and what their "worthy" brand (they just have one) earned them money.. so no still does not make sense for me that they are worth 9billion if they posted revenue of 106mill in 2011.. even if they double or triple that in 2012.. that still very faar away from revenue coming even close to that.. and if they don't earn with a single ip something close to what they are being imaginary worth.. i find this an odd system.. again revenue is a fact.. and something must be wrong with the mathematical formula that spots out thoose evaluations.. i could understand if they take what they earn right know and extrapolate that for a couple years to see what the company is worth know.. but then it would be still faar away from the figure they are tossing around right now.. rovio currently is angry birds.. nothing less nothing more.. and the casey's contraption buyout actually worries me ... alot of people where eager to see what the next new rovio ip is.. and then its a buyout.. i mean.. really.. 100million revenue , 200+ employees and they buy an indies idea.. very underwhelming.. then of course i don't know jack... just feels all very oddly bubbly..
The whole concept is hypothetical - if, starting today, they were to sell off everything one by one, what would they get? If they sold ALL stock of whatever merchandise they had to one person - how much would they get? If they sold the trademark to Angry Birds - I would imagine that would go most of the way towards that $9b. The value is still there, but it's held up in assets that, just like shares, only represent value in a company. Speaking of which, last time I heard they were considering entering the stock market in 2013. On top of those, there are other factors involved. Despite actual profits of $100m+, their actual income will be much, much, much higher. They probably had $1bil of income or more before they had to pay debts / manufacturers / staff / etc. As an analogy, a friend of a friend runs a company that has an annual turnover of over half a million, yet at the end of last year only made about $15,000 profit for the owner.
http://www.rovio.com/en/news/press-releases/161/rovio-entertainment-reports-2011-financial-results/ total income 75,4 mil , total expenses of 27,4 mil .. pre tax 48 mil .. so after tax maybe 30-40 mill (not sure on Finnish tax) not a billion income.. not even close.. so no its not compare able to your friends 500k and 15k ... except his company is also evaluated a billion or so..
Ouch, that seems a little off to me somehow. Guess I was wrong, then, sorry. Still, what do you think an Angry Birds trademark is worth?
well i don't know alot less than 6 billion euros for sure.. i would judge a company by the actual money they have after tax.. what does it help to generate 1 billion if you need 1 billion to sustain it.. similar to your example.. hard to say what angry birds is worth.. right know i would say its worth their income plus factor X for some years and some imaginary increase of revenue.. but thats no where near 6 billion euroes.. i mean honestly.. where on earth do you get from mil 75 to mil 6.000.. but what will be interesting is how rovio will do in 2012.. after their huge scale up during 2011.. i mean from 30 employees to 200+.. they invested alot.. now lets see if they are able to expand profit at the same rate..
But lots of people will pay .0000001 * $9B for .0000001 of everything rovio has. which is the same thing
I think during the Dot Com bubble days tech companies were valued something like 10x revenue. According to that Rovio would be $610 million (1/15 current value) and Facebook would be $37.1 billion (1/3 current value). Which would make Rovio significantly more overvalued than Facebook based on numbers.
