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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.
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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.
