Elisa acquires Sulake

[xxMATTGxx]

Elisa, the Finnish telecommunications and ICT services company, has acquired Sulake, the makers of Habbo. Sulake will continue as an independent company and will continue under the Habbo brand. Elisa previously owned 24% of the company, and has now increased its share to 85 percent.

Sulake has had a dynamic six months, to say the least. This summer they were covered on the UK's Chanel 4 for the company's failure to police the platform for sexual content, and were labeled by the press as a "paedophile haven." This caused Balderton Capital to exit their 13% share, and 3i to later leave their 16% stake.

The main shareholders in Sulake were then Taivas Group, Elisa Group, and the company’s founders Sampo Karjalainen and Aapo Kyrölä.

In October, Sulake then began talks to reduce their workforce by up to 2/3, laying off a maximum of 60 people. Sulake's CEO Paul Lafontaine then stepped down as CEO at the beginning of this year.

Despite these ups and downs more than four million young people visit Habo every month. The net revenue of Sulake in 2012 was approximately 22 million euro and the result was negative.

"Elisa has had an ownership in Sulake from the beginning and has supported the international expansion of the Habbo Hotel service. The global client base, brand, community platform and solid business competence of Sulake, combined with Elisa's expertise, provide new future opportunities," says Mikael Rönnblad, Vice President of Consumer Services Business of Elisa in a press release.

http://www.arcticstartup.com/2013/02/07/elisa-acquires-sulake

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Considering they already had a stake in Sulake for many years - This doesn't always mean it's a bad thing. They are just increasing it to be honest.

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Update (Press Release from Sulake Added)



Elisa becomes the main owner of Sulake Corporation Oy
Press release 7 February 2013

Elisa shall acquire Sulake Corporation Oy. Sulake will continue as an independent company and will serve its customers under the Habbo brand.

Elisa has signed an agreement that covers the purchase of the Sulake shares owned by other principal shareholders. The purchase enables Elisa to increase its ownership from 24 percent to 85 percent. In addition, Elisa will purchase the company's remaining shares. The purchase will be completed in February, 2013. The transaction will not cause any changes in Sulake's operations, and the company will continue its business as before under the Habbo brand. In addition, the acquisition has no effect on Elisa’s future outlook or mid-term financial targets.

Elisa has had an ownership in Sulake from the beginning and has supported the international expansion of the Habbo Hotel service. The global client base, brand, community platform and solid business competence of Sulake, combined with Elisa's expertise, provide new future opportunities, says Mikael Rönnblad, Vice President of Consumer Services Business of Elisa.

I am delighted to acknowledge that our long time investor is increasing their ownership and by that showing their trust to our company’s business, says CEO of Sulake, Markku Ignatius.
Sulake is an internationally known brand which creates social meeting places and games on the Internet. The most familiar of Sulake's services is Habbo Hotel, which was designed for teenagers. Habbo Hotel has 12 different language versions and users in 150 countries, and a total of more than four million young people visiting the service every month. Sulake's head office is located in Helsinki. The net revenue of Sulake in 2012 was approximately 22 million euro and the result was negative.

[Kieran]

Suggests to me it's quite a good thing if someone increases a stake from 25 to 80 percent. Suggests they think it's going somewhere.

[xxMATTGxx]

Press Release from Sulake:



Elisa becomes the main owner of Sulake Corporation Oy
Press release 7 February 2013

Elisa shall acquire Sulake Corporation Oy. Sulake will continue as an independent company and will serve its customers under the Habbo brand.

Elisa has signed an agreement that covers the purchase of the Sulake shares owned by other principal shareholders. The purchase enables Elisa to increase its ownership from 24 percent to 85 percent. In addition, Elisa will purchase the company's remaining shares. The purchase will be completed in February, 2013. The transaction will not cause any changes in Sulake's operations, and the company will continue its business as before under the Habbo brand. In addition, the acquisition has no effect on Elisa’s future outlook or mid-term financial targets.

Elisa has had an ownership in Sulake from the beginning and has supported the international expansion of the Habbo Hotel service. The global client base, brand, community platform and solid business competence of Sulake, combined with Elisa's expertise, provide new future opportunities, says Mikael Rönnblad, Vice President of Consumer Services Business of Elisa.

I am delighted to acknowledge that our long time investor is increasing their ownership and by that showing their trust to our company’s business, says CEO of Sulake, Markku Ignatius.
Sulake is an internationally known brand which creates social meeting places and games on the Internet. The most familiar of Sulake's services is Habbo Hotel, which was designed for teenagers. Habbo Hotel has 12 different language versions and users in 150 countries, and a total of more than four million young people visiting the service every month. Sulake's head office is located in Helsinki. The net revenue of Sulake in 2012 was approximately 22 million euro and the result was negative.

[zombies]

maybe they'd make more money at least if they did the following things

put credits back to 35 for around £3.
bring back battleball rebound. they're making a mistake saying they won't.
return the guestbooks. i'm sure some people only played for habbo homes.

and probably many more things.

[GommeInc]

Only 4 million people visit a month these days? I'm sure it used to be a lot more, perhaps 3 times as much :/

Just a typical increase in share ownership. It's neither good or bad news.

[Daltron]

Only 4 million people visit a month these days? I'm sure it used to be a lot more, perhaps 3 times as much :/

I can't remember where exactly but I recall Paul (ex CEO) boasting to media outlets of 30+ million visitors a month. Either that's a huge drop or someone at Sulake was over exaggerating :p I'm assuming the latter

[Abdicators]

I can't remember where exactly but I recall Paul (ex CEO) boasting to media outlets of 30+ million visitors a month. Either that's a huge drop or someone at Sulake was over exaggerating :p I'm assuming the latter
There is a difference between "unique visits", and "total visits".

[GoldenMerc]

Does this mean Elisa get the Habbo pillows and stuff from the office

[Debouch]

It'll be interesting to see whether Elisa puts more of their branding towards Habbo or vice-versa now that they've taken more stake in the company.

I live in Finland and my phone carrier is Elisa, so it could be interesting to see if, even though it was stated that Sulake will remain an independent company, the two ever come together in some way.

[Aiden]

So Elisa owns Habbo now? ahaa?

[Faceless]

I really hope this is a good thing. Something interesting needs to happen x_x

[j0rd]

So Elisa owns Habbo now? ahaa?
They've always had a share in Sulake, but now they are the biggest share holder. Don't own 100% of it.

[Aiden]

They've always had a share in Sulake, but now they are the biggest share holder. Don't own 100% of it.

But since they have more then 50% doesnt that mean that there the owners? idn lol

[Aaron]

But since they have more then 50% doesnt that mean that there the owners? idn lol

Well this means they're shareholders, as they've invested into a company; company being Sulake.

It'll be interesting to see what they do in terms of market etc, that was a large increase in shares by Elisa. They obviously must see potential in Sulake.

[e5]

The company may be going somewhere, but doesn't mean Habbo is...

Suggests to me it's quite a good thing if someone increases a stake from 25 to 80 percent. Suggests they think it's going somewhere.

[xxMATTGxx]

The company may be going somewhere, but doesn't mean Habbo is...

Well they would have to come up with another product then as Sulake only have Habbo these days.

[Kardan]

Sulake are in trouble.
March 2011 net revenue was 56.2M euros, now it's down to 22M euros...

[Pigperson]

I hope more is invested into Habbo I guess but I wouldn't be surprised if nothing was done.

Will

[Samantha]

I think only the future will tell how it'll pan out for them, 85% is a lot though :P.

[MKR&*42]

Sulake are in trouble.
March 2011 net revenue was 56.2M euros, now it's down to 22M euros...

Really? That was a massive improvement compared to every year before (surprisingly), such a shame. 22M Euros is their lowest since 2004 I believe? Based on the 'revenue' section here: http://habbox.com/#!/SulakeHistory

[auffant1]

Lets just hope Elisa doesn't turn Habbo into a gaming platform :/.

[Bob1]

O.o they aim to buy the rest of the shares by the end of the month so they will have 100% ownership in Sulake, not just controlling share. This will make a big difference, before with only a 24% stake they would of had little influence over the direction of the company, they've bought Sampoo and Aapo out who before seemed to retain a controlling share.
Surprised anyone's interested in it if those figures are correct and its revenue has dropped that dramatically. The fact it now only employs 50 people worldwide with no local offices is crazy. Although I don't visit much anymore would be a shame if they just bled Habbo dry, hope they do something with it...got a feeling they didn't buy Sulake for Habbo though. :¬:

[xxMATTGxx]

O.o they aim to buy the rest of the shares by the end of the month so they will have 100% ownership in Sulake, not just controlling share. This will make a big difference, before with only a 24% stake they would of had little influence over the direction of the company, they've bought Sampoo and Aapo out who before seemed to retain a controlling share.
Surprised anyone's interested in it if those figures are correct and its revenue has dropped that dramatically. The fact it now only employs 50 people worldwide with no local offices is crazy. Although I don't visit much anymore would be a shame if they just bled Habbo dry, hope they do something with it...got a feeling they didn't buy Sulake for Habbo though. :¬:

They probably know that Habbo can actually make money since they have been involved for a while. Now they wish to help it out fully by "owning" it I suppose. Will be interesting to see what happens when it all goes through.

[-:Undertaker:-]

The question is whether they see potential or whether its one of them acquisitions with the intention of asset stripping.

[Okeanos]

The question is whether they see potential or whether its one of them acquisitions with the intention of asset stripping.

What assets would they be? :s

[-:Undertaker:-]

What assets would they be? :s

I'd imagine technology along with any parts of the company that still make money.

Or they could have just bought it with the intention of allowing it to run its course and squeeze the last remaining profits out of it.

Who knows.

[ngc6611]

What assets would they be? :s

it's not that obvious when you look it from outside but the assets are top quality codebase which is running habbo and also the skills still employed by sulake.

there is still some minor shareholders (ex employees), when enough of them sell their shares sulake can be fully incorporated, i see good things in this but also there are some possible things that might not be that good.

i would bet on the good as always. be not worried


edit: as a disclaimer i'm not anymore employed or staff since i chose to be sacked on december...

[xxMATTGxx]

it's not that obvious when you look it from outside but the assets are top quality codebase which is running habbo and also the skills still employed by sulake.

there is still some minor shareholders (ex employees), when enough of them sell their shares sulake can be fully incorporated, i see good things in this but also there are some possible things that might not be that good.

i would bet on the good as always. be not worried


edit: as a disclaimer i'm not anymore employed or staff since i chose to be sacked on december...

I assume you still believe the Habbo product still has a future with the right kind of people running the place?

[rainforest]

Habbo has run its course, it is time to close the doors and look to the future.

[Bob1]

The question is whether they see potential or whether its one of them acquisitions with the intention of asset stripping.


I'd imagine technology along with any parts of the company that still make money.

Or they could have just bought it with the intention of allowing it to run its course and squeeze the last remaining profits out of it.



it's not that obvious when you look it from outside but the assets are top quality codebase which is running habbo and also the skills still employed by sulake.


These were my thoughts exactly. IMO the brand is too damaged and business model has developed major flaws, they'll strip it but I guess we'll see. Like I said I hope they don't and I hope it's a really positive move but I can't see why a telecomms firm would want to develop an avatar based teen chat site.