EA is back in the picture at the moment. There has been an announcement of them purchasing mobile game developer, Glu Games, for $2.1 Billion.
Who are Glu Games? WWE Universe and Disney Sorcerers Arena are just a couple of games they’ve developed. In addition to previous mobile studio purchases, could this mean EA is looking to push even further into mobile gaming? Or do you think they’re just looking to buy the competition? Let me know in the comments.
But this is fantastic news for Glu Games shareholders also as it sounds like the stocks are going up in price. Does that mean they’re quids (or dollars?) in?
REDWOOD CITY, Calif.–(BUSINESS WIRE)– Electronic Arts Inc. (NASDAQ: EA), a global leader in interactive entertainment, and GluMobile Inc. (NASDAQ: GLUU), a leading global developer and publisher of mobile games including Design Home, Covet Fashion, and MLB Tap Sports Baseball, have entered into a definitive agreement under which Electronic Arts will acquire Glu Mobile. Under the terms of the agreement, EA will acquire Glu for $2.1 billion in enterprise value. Glu stockholders will receive $12.50 in cash for each share of Glu stock. Representing a 36% premium to Glu’s closing share price on February 5, 2021. Upon closing, the acquisition will be immediately accretive to Electronic Arts’ total net bookings, and is expected to grow underlying profitability beginning in its first year.
Find out more on the official press release from EA.