'Angry Birds' creator hopes for happy IPO
Game developer Rovio floats the possibility of 2012 public offering, saying the company could be worth $1B.
One of the biggest beneficiaries of the mobile boom iPhone is Rovio Entertainment. Based in Finland, the company is the mastermind behind the hugely popular game "Angry Birds."
Rovio's chief marketing officer, Peter Vesterbacka, says the company is probably worth more than $1 billion, thanks to its hit game, according to Bloomberg, and it looks like the company might be prepping for an IPO.
Rovio makes intensely addictive games that have seen more than a million downloads. It also has been aggressive in finding new sources of growth, such as by moving onto other platforms like Google (GOOG) Android and G+ beyond just the wildly popular Apple (AAPL) iPhone.
But the big vision for Rovio is to create a mega-brand. The company sees itself as becoming the next-generation Disney (DIS). And it's on its way, at least in one humorous regard -- China is home to a fake Angry Birds theme park.
To build its brand and monetize things, Rovio has built a strong merchandising business, selling things like toys and knickknacks. Sales come to about 1 million items per month, and an "Angry Birds" movie is in the works.
- Related: Ford, not GM, is king of Detroit
In light of all this, it should be no surprise that Rovio is prepping for an IPO. And the company should have little difficulty finding eager investors.
So when might a deal hit the market? Unfortunately, according to Vesterbacka, investors probably will need to wait about a year. It looks like Rovio still needs to make the necessary investments and infrastructure changes to become a public company.
And the wait definitely presents some risks. One is the onslaught of fierce competition. Besides traditional operators like Electronic Arts (ERTS), Rovio will face a growing number of early-stage companies.
Also, can Rovio make a sustainable business from just one brand? After all, Zynga has been smart to create a wide offering of games, including "FarmVille" and "Mafia Wars," which helps grow its brand and mitigate the risk of a game dropping off in popularity.
Rovio has shown that it can build at least one great brand and can find creative ways to capitalize on it. But if it wants to have a successful IPO, the company should probably work on expanding past "Angry Birds" as soon as possible.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
When it comes to efficiency gains, a watt saved is a watt earned.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.