Electronic Arts (EA) has acquired mobile gaming company Glu for $2.1bn in a deal that will allow the gaming company to expand its offerings in the mobile gaming market. Glu has created games including “Diner Dash Adventures” and “MLB Tap Sports Baseball”, and had revenues of $540m last year on the back of 878 million downloads. The acquisition will see Glu become a wholly-owned subsidiary of EA, and its CEO, Nick Earl, will join the buyer’s mobile division as a senior executive. The deal is expected to close this quarter.
Gaming Giant EA Acquires Mobile Game Developer Glu for $2.1B
Overview
Gaming powerhouse Electronic Arts (EA) has announced the acquisition of Glu, a highly successful mobile gaming company. The deal has been valued at $2.1B, making it one of the biggest acquisitions in the gaming industry in recent years. Glu is known for developing a wide range of popular mobile games, including “Kim Kardashian: Hollywood,” “Diner Dash Adventures,” and “MLB Tap Sports Baseball.”
Background
EA is already a major player in the gaming industry, and this acquisition is a strategic move to expand its reach in the mobile gaming market. The company has a massive portfolio of popular titles, including the “FIFA” and “Madden NFL” franchises, and it has made recent acquisitions to broaden its offerings, including buying racing game developer Codemasters and mobile game studio Playdemic.
Glu, on the other hand, has made a name for itself with its popular mobile games, which have been downloaded more than 878 million times worldwide. The company generated $540 million in revenue in 2020 alone, and it has a strong pipeline of upcoming titles.
The Deal
The acquisition will see EA paying $12.50 per share for Glu, which represents a premium of approximately 33% on Glu’s closing price on the day before the announcement. EA will be acquiring all outstanding shares of Glu’s common stock, and the deal is expected to close in the quarter ending June 30, 2021.
Once the acquisition is complete, Glu will become a wholly-owned subsidiary of EA. Glu’s Chief Executive Officer, Nick Earl, will join EA as a senior member of the mobile division, reporting directly to Andrew Wilson, CEO of EA.
What This Means for the Industry
The acquisition is a significant move for both companies and the gaming industry as a whole. For EA, it provides an opportunity to expand its offerings in the highly lucrative mobile gaming market. The acquisition also gives EA access to Glu’s talented team of developers and its impressive roster of popular mobile games.
For Glu, the acquisition offers the company greater resources and expertise to develop even more compelling mobile games. The deal will also provide a broader platform for Glu to distribute its games and a larger audience to reach.
The overall effect of this acquisition on the gaming industry remains to be seen, but with the mobile gaming market continuing to grow rapidly, it’s clear that EA is positioning itself for a strong future in this space