Movie match powerhouse Digital Arts has agreed to obtain Glu Cell for $two.4 billion in a major shift to beef up its cell gaming choices amid the pandemic-fueled growth in virtual amusement.
In accordance to EA, the combination of the two providers will generate a cell merchandise portfolio that “includes extra than fifteen major stay products and services across speedy-expanding genres with a mixed $one.32 billion in bookings around the previous twelve months.”
Glu Cell, which was started as Cyent Studios in 2001 and went general public in 2007, is identified for publishing movie star-concentrated titles these as “Kim Kardashian: Hollywood” as properly as “Design Household,” “Covet Trend,” and “MLB Tap Sporting activities Baseball.”
Less than the phrases of the offer, EA will fork out $12.fifty in dollars for each individual Glu share, a high quality of about 33% to the closing price tag on Monday. “Mobile carries on to expand as the most significant gaming platform in the environment, and with the addition of Glu’s online games and talent, we’re doubling the dimensions of our cell enterprise,” Electronics Arts CEO Andrew Wilson claimed in a news release.
Cell online games accounted for about 50 percent of the nearly $a hundred seventy five billion that shoppers globally invested on videogame software package previous calendar year, according to analytics company Newzoo BV. As The Wall Road Journal experiences, EA is “best identified for making console and computer system match franchises these as FIFA and Battlefield” though cell “makes up the smallest — and slowest expanding — portion of the company’s net bookings.
In the holiday getaway quarter, normally the company’s most rewarding interval, cell net bookings grew 3% to $191 million. The acquisition of Glu Cell will come two months following EA acquired racing match developer Codemasters for $one.two billion.
“The shift is analogous to Activision Blizzard’s acquisition of Candy Crush maker King in 2015, serving as an highly-priced way to crack into the rewarding cell area,” The Verge claimed. In accordance to VentureBeat, Glu “specializes in even bigger-spending plan cell online games, usually with complete 3D visuals” but also “focuses on free of charge-to-engage in online games that operate for years and produce revenue from microtransactions. That is the enterprise model that EA has regularly told traders it needs to emphasize in the long term.”