Electronic Arts (EA) has announced its acquisition of mobile gaming company Glu Mobile for $2.1 billion. Glu Mobile, based in San Francisco, develops and publishes free-to-play games for Android and iOS devices. EA hopes to expand its mobile gaming portfolio, access Glu Mobile’s franchises and IP, increase scale and reach in the mobile gaming market, and improve monetization opportunities through Glu’s freemium model. However, concerns have been raised about the high cost of the acquisition and the integration of two companies with different business models. Despite mixed reactions, the acquisition is expected to have a significant impact on the future of mobile gaming.
Electronic Arts (EA) announces acquisition of mobile gaming company, Glu Mobile
What is EA?
Electronic Arts (EA) is a leading global interactive entertainment software company that provides games, content, and online services for Internet-connected consoles, personal computers, mobile phones, and tablets.
What is Glu Mobile?
Glu Mobile is a San Francisco-based mobile gaming company that specializes in the development and publishing of free-to-play games for Android and iOS devices, including popular titles such as Kim Kardashian: Hollywood, Design Home, and Tap Sports Baseball.
Why was Glu Mobile acquired by EA?
EA announced on February 8, 2021, that it has agreed to acquire Glu Mobile for $2.1 billion, in a deal that would expand the company’s mobile gaming portfolio and strengthen its position in the mobile gaming market.
EA sees Glu Mobile’s expertise in free-to-play games, celebrity licensing, and casual sports games as complementary to its existing mobile games, such as The Sims, Plants vs. Zombies, and FIFA Mobile.
What are the benefits of this acquisition?
The acquisition of Glu Mobile will bring several benefits to EA, including:
- Expansion of its mobile gaming portfolio
- Access to Glu Mobile’s popular franchises and intellectual property
- Increased scale and reach in the mobile gaming market
- Improved monetization opportunities through Glu Mobile’s freemium business model
- Greater diversity of revenue streams
What are the reactions to this news?
The news of EA’s acquisition of Glu Mobile has been met with mixed reactions from industry analysts and stakeholders.
Some analysts see the acquisition as a smart move by EA to strengthen its mobile gaming business and take advantage of the growing mobile gaming market.
However, others have raised concerns about the high cost of the acquisition and the risks associated with integrating two companies with different cultures and business models.
Conclusion
Despite the mixed reactions, EA’s acquisition of Glu Mobile is a significant development in the mobile gaming industry and is likely to have a major impact on the future of mobile gaming.
With the added expertise, IP, and reach that Glu Mobile brings to EA, it will be interesting to see how the company leverages these assets to create new and innovative mobile gaming experiences for players around the world.