Electronic Arts have completed the $2.4 billion purchase of Glu Mobile, a mobile game producer founded by a former EA executive.
Based on Glu’s cash and other assets, the deal’s enterprise value is $2.1 billion. In addition, the transaction will boost EA’s mobile gaming operation, which already has a substantial mobile gaming section.
The partnership brings together two major mobile-first teams and complements games in the sports, lifestyle, mid-core, and casual genres. Glu Mobile is headquartered in San Francisco and employs around 800 people, including 500 developers. EA currently employs over 10,750 people.
Merger Of Electronic Arts And Glu
According to the business, the merger of Electronic Arts and Glu will help EA expand its mobile portfolio and generate new experiences on mobile, the world’s largest gaming platform. EA’s mobile business will see considerable growth due to the transaction, which will expand on the company’s mobile network of 100 million monthly active players and create a market-leading portfolio of more than 15 top live services across numerous fast-growing genres.
Nick Earl, the CEO of Glu, previously worked at Electronic Arts. Jeff Karp, the senior vice president of EA mobile, will be his boss. Karp is already in charge of EA’s mobile teams. Covet Fashion, Deer Hunter, Design Home, Diner Dash Adventures, Disney Sorcerer’s Arena, Kim Kardashian: Hollywood, and MLB Tap Sports Baseball are Glu’s most popular titles. The Covet Fashion and Design Home games, for example, offered up new markets for women’s games, which may have piqued EA’s interest in Glu.
According to EA CEO Andrew Wilson, its outstanding teams and intellectual properties place it in the world’s largest gaming sector. In addition, he claims it will serve as a powerful growth engine for current games, allowing them to develop and deliver more experiences in sports, lifestyle, mid-core, and casual genres.
In a statement, Earl stated that partnering with EA would help Glu take its games to the next level and expedite its strategic mobile-first strategy. There will be no layoffs. According to a spokeswoman, the businesses complement one another and offer value to the corporation. It wasn’t about cost synergies in this deal.
Electronic Arts’ acquisition of Glu Mobile is part of the company’s expansion plan, which aims to provide more outstanding experiences and top live services while also reaching more gamers on more platforms across the world.
San Francisco, Foster City, California, Orlando, Toronto, and Hyderabad are all home to Glu.
EA has been on a buying frenzy since it rests on a solid balance sheet and wants to scale with new gaming titles. Codemasters, based in the United Kingdom, was purchased for $1.2 billion in December.
Video Game Sales In The United States
According to research firm NPD, video game sales in the United States hit a record $56.9 billion last year, as demand for virtual entertainment skyrocketed after major public events were canceled to combat the spread of the new coronavirus.
According to data from analytics firm Newzoo, global gaming revenue grew 13.3 percent last year, outpacing both PC and console gaming.
In recent months, the gaming industry has experienced several consolidations, including Microsoft’s $7.5 billion acquisition of ZeniMax Media and Embracer’s purchase of Gearbox and Easybrain.
EA had already boosted its annual sales forecast, citing strong sales of its sports games such as “FIFA 21” and “Madden NFL 21.”
EA was advised by J.P. Morgan, while Glu was advised by Goldman Sachs, Morgan Stanley, and UBS Securities.