Electronic Arts will acquire mobile game developer Glu Mobile in a deal valued at $ 2.4 billion. Glu shareholders will receive $ 12.50 in cash for each share they hold, a 36% premium over the share’s closing price on February 5 (note: Glu has $ 364 million in net cash) .
Glu Mobile is known for casual games (including many board game conversions), celebrity-themed games (including Kim Kardashian: Hollywood and a Taylor Swift social network), sports games and many more. The typical Glu game is free and earns money through micro-transactions.
The EA / Glu combined wallet has generated $ 1.32 billion in bookings over the past 12 months. This acquisition will help expand EA’s player base (over 100 million monthly active mobile game players).
As for Glu, it will benefit from EA’s global licensing and distribution capabilities, press release says Design house, Coveted fashion and MLB Tap Sports Baseball in particular (as you probably well know EA Sports is huge and it requires a ton of licensing deals).
Glu has nearly 800 employees of which more than 500 are mobile game developers. EA knows Glu’s creative leaders and will take a hands-on approach
“Mobile continues to grow as the world’s largest gaming platform, and with the addition of Glu’s games and talent, we are doubling the size of our mobile business. With a broad intellectual property portfolio and an expanding global audience, we will provide more exciting experiences for our players and drive the growth of Electronic Arts, ”said Andrew Wilson, CEO of Electronic Arts.