Electronic Arts will acquire mobile game developer Glu Mobile in a deal worth $2.4 billion. Glu shareholders will receive $12.50 in cash for each share they hold, a 36% premium over the closing share price on February 5 (note: Glu has $364 million in net cash).
Glu Mobile is known for casual games (including many board game conversions), celebrity-themed games (including Kim Kardashian: Hollywood and a Taylor Swift social network), sports games and many more. The typical Glu game is free-to-play and makes money on micro-transactions.
The combined EA/Glu portfolio brought in $1.32 billion in bookings over the last 12 months. This acquisition will help expand EA’s player base (more than 100 million monthly active players of mobile games).
As for Glu, it will benefit from EA’s global licensing and distribution capabilities, the press release mentions Design Home, Covet Fashion and MLB Tap Sports Baseball in particular (as you probably well know, EA Sports is massive and that requires a ton of licensing deals).
Glu has nearly 800 employees of which more than 500 are mobile game developers. EA is familiar with Glu’s creative leaders and will be taking a hands-off approach
“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. With a deep IP portfolio and an expanding global audience, we’ll deliver more exciting experiences for our players and drive further growth for Electronic Arts,” says Andrew Wilson, CEO of Electronic Arts.