Electronic Arts (EA) have acquired mobile game developer Glu Mobile for $2.1 Billion in one of the biggest acquisitions the gaming industry has seen.
Shares in Glu went up 36% following the merger, with shares going for just over $12.50.
Glu Mobile is known mainly for celebrity games like Kim Kardashian Hollywood, Disney Sorcerer’s Arena, and other free casual games as well as some of the most successful mobile gaming franchises. With much of their profit revenue coming from in-game microtransactions.
Glu Mobile received several bids as it was underperforming compared to its Mobile Gaming peers, however now with the merger, it is suggested that they are now valued at $2.1 billion.
EA stated in a press release “Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business.” This acquisition will help EA expand their player base into Mobile Gaming, which has over “100 million active players”.
The press release also revealed that EA and Glu Mobile combined portfolios for the last 12 months is estimated at $1.32bn.
The deal is said to close by 31st June. This acquisition is the second one for EA as they acquired Codemasters Group for $1.2 billion last December.
Words By Ugbad Elmi
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