Video recreation powerhouse Electronic Arts has agreed to buy Glu Cellular for $two.four billion in a major go to beef up its cellular gaming offerings amid the pandemic-fueled increase in virtual enjoyment.
According to EA, the mixture of the two providers will produce a cellular products portfolio that “includes far more than fifteen top rated are living services throughout rapidly-growing genres with a combined $one.32 billion in bookings around the past twelve months.”
Glu Cellular, which was started as Cyent Studios in 2001 and went general public in 2007, is known for publishing celeb-concentrated titles this sort of as “Kim Kardashian: Hollywood” as effectively as “Design Property,” “Covet Trend,” and “MLB Tap Sporting activities Baseball.”
Underneath the conditions of the deal, EA will pay back $12.50 in funds for each individual Glu share, a high quality of about 33% to the closing cost on Monday. “Mobile proceeds to increase as the most important gaming platform in the environment, and with the addition of Glu’s online games and expertise, we’re doubling the dimension of our cellular small business,” Electronics Arts CEO Andrew Wilson said in a information launch.
Cellular online games accounted for about fifty percent of the almost $175 billion that people worldwide expended on videogame computer software past calendar year, according to analytics business Newzoo BV. As The Wall Street Journal studies, EA is “best known for creating console and laptop or computer recreation franchises this sort of as FIFA and Battlefield” although cellular “makes up the smallest — and slowest growing — portion of the company’s web bookings.
In the holiday getaway quarter, usually the company’s most beneficial interval, cellular web bookings grew 3% to $191 million. The acquisition of Glu Cellular will come two months following EA acquired racing recreation developer Codemasters for $one.two billion.
“The go is analogous to Activision Blizzard’s acquisition of Sweet Crush maker King in 2015, serving as an pricey way to break into the beneficial cellular house,” The Verge said. According to VentureBeat, Glu “specializes in larger-price range cellular online games, usually with complete 3D visuals” but also “focuses on free of charge-to-engage in online games that run for years and crank out revenue from microtransactions. That is the small business product that EA has consistently explained to investors it desires to emphasize in the upcoming.”