One of the most popular games since the early release of touchscreen smartphones, Angry Birds, is dropping to a halt. It is confirmed that the company loses half of its value in just one daytime. How did that happen and what was the reason behind it? We try to answer.
The stock price of Angry Birds developer, Rovio, is in jeopardy, Tech Crunch reports. The developer team which just released their 2018 profit forecast to their investors showed some pretty concerning numbers.
The company which was valued at US$1.1 billion in terms of initial public offering (IPO) per October last year is now valued below US$500 million. The report claims that the value was decreased because of future profits predicted by Rovio.
Even after generating a revenue of US$365 million in 2017, a 55% increase compared to 2016. But the latest reports claimed that Rovio was only expected to claim a revenue of US$319 million for 2018.
And also, this is one of the reasons why investors are pulling away from Rovio: misleading statements that Rovio has made in the previous years regarding future profit forecast.
Not only that, after the announcement of the downfall, an important figure of the company left the team. Their Head of Business, Wilhelm Taht, has officially left Rovio due to “personal reasons”.
So, why is this happening to Rovio that has to build a franchise around Angry Birds? One of the big reason as of why this happened is because Angry Birds is suffering from franchise fatigue.
The popularity has worn off and there is nothing they can do to make the fans love them even more. Fans do not want to see the same game (or same character) and face over and over again.
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The other reason is the lack of innovation from Rovio. Fans are more excited about the Angry Birds game they used to play in the 19th century compared to the 20th century.
So, with all that reasons, it’s only no wonder investors are leaving, correct?