Earlier this week, Electronic Arts announced that it had entered into an agreement to purchase Glu Moblie for $2,1 billion. If the deal closes, it would see Glu shareholders receive $12,5 for every share in the company. The book value of the offering is US$2,4 billion, but Glu has US$364 million net cash.
EA CEO Andrew Wilson says:
"Our acquisition of Glu combines incredible teams and deeply engaging products to create a leader in mobile gaming with proven expertise in many fast-growing genres.
Mobile continues to grow as the world's largest gaming platform, and with the addition of Glu's gaming and talent, we are doubling the size of our mobile business. With a broad IP portfolio and an expanding global audience, we will deliver more exciting experiences for our players and drive Electronic Arts' growth."
Codemasters Approves EA's $1,2 Billion Acquisition of the CompanyElectronic Arts believes there will be an increase in its profitability from the business
Electronic Arts believes the deal increases underlying profitability in the first year. With Glu, EA receives more than 15 live services from the company, which combined generated more than $544 million in bookings last year alone. For comparison, EA's mobile titles earned $779 million over the same period.
About Glu
Glu has in its game library the titles Covet Fashion, Deer Hunter, Design Home, Diner Dash, Disney Sorcerer's Arena, MLB Tap Sports Baseball and Kim Kardashian Hollywood. There are around 800 people working at the company, of which XNUMX are developers with offices around the world (San Francisco, Foster City, Toronto and Hyderabad).
EA explains its intentions when buying Glu
According to EA, its successful products and those of Glu are complementary and attract a diverse audience, managing to cover the largest mobile game genres. In addition, the company notes that there is still the fact that the combination of "Glu's expertise in creating and monetizing casual and esports games" with "EA's industry-leading IP in esports and beyond."
Expectation for the conclusion of the negotiation
With shareholder approval and regulations, EA expects the deal to be completed by June 31, 2021.
