Electronic Arts (EA) has acquired mobile gaming company Glu Mobile in a $2.1 billion deal, which includes debt. The acquisition will double the size of EA’s mobile gaming business and give the company access to a portfolio of popular mobile games. The deal is expected to close in the quarter ending June 30, 2021. Glu Mobile will become a wholly-owned subsidiary of EA, and its employees will join EA’s mobile gaming division. Glu Mobile CEO Nick Earl will report to EA CEO Andrew Wilson, and the company’s headquarters will remain in San Francisco.
EA Acquires Mobile Gaming Company Glu Mobile in $2.1 Billion Deal
Introduction
Electronic Arts (EA) has acquired mobile gaming company Glu Mobile in a $2.1 billion deal, which includes debt. The acquisition will give EA access to a portfolio of popular mobile games, such as “Design Home,” “Covet Fashion,” and “MLB Tap Sports Baseball.”
Details of the Acquisition
The deal is expected to close in the quarter ending June 30, 2021. EA will pay $12.50 per share in cash for Glu, which represents a premium of 36% over Glu’s closing price on February 5, 2021. The acquisition includes Glu’s outstanding equity awards, which will be converted into EA equity awards.
Why EA Acquired Glu Mobile
EA has been expanding its mobile gaming business in recent years, and the acquisition of Glu Mobile will help the company accelerate its growth in this sector. According to EA CEO Andrew Wilson, “Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business. With a deep IP portfolio and an expanding global audience, we’ll deliver more exciting experiences to our players and add more momentum to our growth.”
Glu Mobile’s Popular Mobile Games
Glu Mobile is known for its popular mobile games such as “Design Home,” a home decor game that allows players to design, decorate, and furnish their dream houses; “Covet Fashion,” a fashion-based game that allows players to create their own fashion looks and compete in style challenges; and “MLB Tap Sports Baseball,” a mobile game that allows players to create a team of their favorite major league baseball players and compete in tournaments.
The Future of EA’s Mobile Gaming Business
The acquisition of Glu Mobile is set to double the size of EA’s mobile gaming business, and the company is planning to release a number of new mobile games in the coming years. “We’re focused on delivering a range of high-quality content and live services across sports, lifestyle, and casual games,” says Wilson. “With Glu, we now have a world-class mobile development team and an excellent IP portfolio to make that happen.”
The Impact on Glu Mobile
Glu Mobile will become a wholly-owned subsidiary of EA, and its employees will join EA’s mobile gaming division. Glu Mobile CEO Nick Earl will report to Wilson, and the company’s headquarters will remain in San Francisco. “We’re excited to join EA and continue our mission of creating fun and engaging mobile games,” says Earl. “Together, we’ll bring an amazing portfolio of games and services to players around the world.”
Conclusion
The acquisition of Glu Mobile by EA is set to expand EA’s mobile gaming business, and give the company access to a variety of popular mobile games with a large global audience. With the addition of Glu’s games and talent, EA is set to double the size of its mobile gaming business and release more exciting games and services to its players.