Rovio: We find it unlikely that the bid is successful

We feel that Playtika 's bid for Rovio looks good in the short term considering the weak sentiment of the mobile gaming market but would leave the long-term potential on the table. We also expect Rovio’s Board to focus on the potential of the growth areas that the company is nurturing under its wings and that will materialize in the next few years, and thus refuse the offer. We do not believe that Playtika can make a sufficiently higher offer that would make Rovio ignore the risks associated with Playtika's questionable reputation. In the short term, we also consider a significantly higher bid from another party unlikely. We believe that after the share price hike Rovio's share valuation (2023e EV/EBIT 10x) appropriately emphasizes the relation between the challenging short-term operating environment and the growth potential as the company's strategy progresses.