Digital Arts will purchase cellular recreation developer Glu Cellular in a deal price $2.four billion. Glu shareholders will obtain $12.50 in money for every share they maintain, a 36% premium over the closing share worth on February 5 (notice: Glu has $364 million in internet money).
Glu Cellular is understood for informal video games (together with many board recreation conversions), celebrity-themed video games (together with Kim Kardashian: Hollywood and a Taylor Swift social community), sports activities video games and plenty of extra. The standard Glu recreation is free-to-play and makes cash on micro-transactions.
The mixed EA/Glu portfolio introduced in $1.32 billion in bookings during the last 12 months. This acquisition will assist develop EA’s participant base (greater than 100 million month-to-month lively gamers of cellular video games).
As for Glu, it should profit from EA’s international licensing and distribution capabilities, the press launch mentions Design Dwelling, Covet Style and MLB Faucet Sports activities Baseball specifically (as you most likely properly know, EA Sports activities is very large and that requires a ton of licensing offers).
Glu has almost 800 workers of which greater than 500 are cellular recreation builders. EA is aware of Glu’s inventive leaders and will probably be taking a hands-off strategy
“Cellular continues to develop as the largest gaming platform on this planet, and with the addition of Glu’s video games and expertise, we’re doubling the scale of our cellular enterprise. With a deep IP portfolio and an increasing international viewers, we’ll ship extra thrilling experiences for our gamers and drive additional development for Digital Arts,” says Andrew Wilson, CEO of Digital Arts.