Electronic Arts to acquire gaming developer Glu Mobile for $2.1 billion

Electronic Arts (EA), a global leader in interactive entertainment, is on a buying spree in recent months. In December 2020, we covered the gaming giant after it acquired U.K. racing game developer Codemasters for $1.2 billion. Codemasters is a developer and publisher of interactive entertainment products for a global audience across multiple gaming platforms.

Now with billions of dollars war chest, the company just announced another acquisition. This week, Electronic Arts said it’s acquiring San Francisco, California-based Glu Mobile for $2.1 billion in enterprise value. Glu Mobile is a leading global developer and publisher of mobile games including Design Home, Covet Fashion, and MLB Tap Sports Baseball. The combined company will create a new global leader in the largest and fastest-growing gaming segment.

As part of the acquisition agreement, Glu stockholders will receive $12.50 in cash for each share of Glu stock, representing a 36% premium to Glu’s closing share price on February 5, 2021. Upon closing, the acquisition will be immediately accretive to Electronic Arts’ total net bookings and is expected to grow underlying profitability beginning in its first year.

Glu Mobile was founded in 2001 as Sorrent by Kristian Segerstrale and Scott Orr. In 2004, Sorrent merged with Macrospace to form Glu Mobile. Glu Mobile is a technology platform developing entertainment-focused freemium games for smartphones and tablet devices.

The acquisition will immediately add significant scale to Electronic Arts’ mobile games business. The combination of Electronic Arts and Glu creates a leading mobile product portfolio that includes more than 15 top live services across fast-growing genres with a combined $1.32 billion in bookings over the last twelve months.

Bringing together the best-in-class mobile development teams at Glu and Electronic Arts’ mobile business, with a collective portfolio of powerful IP in sports, lifestyle, RPG, casual and other genres, and leveraging Electronic Arts’ marketing and distribution strength to generate global reach, the combined organization will build on EA’s network of 430 million players, including more than 100 million monthly active players in mobile, and expand to new audiences and demographics all over the world.

“Our acquisition of Glu combines amazing teams and deeply-engaging products to create a mobile games leader with proven expertise across many fast-growing genres,” said Andrew Wilson, CEO of Electronic Arts. “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.”

“This transaction is the culmination of the tremendous work of the Glu team to deliver world-class interactive experiences for our players while driving business momentum that has led to strong financial and operational results. It represents a terrific outcome for all of our stockholders and other key constituents,” said Nick Earl, CEO of Glu. “As part of Electronic Arts, we will continue capitalizing on the opportunities ahead in the expanding mobile gaming industry.”

Glu is focused on creating compelling original IP games such as GUN BROS, DEER HUNTER, BLOOD & GLORY, and SAMURAI VS. ZOMBIES DEFENSE on a wide range of platforms including iOS, Android™, Windows Phone, Google Chrome, and MAC OS. Glu’s technology platform enables its titles to be accessible to a broad audience of consumers globally. Glu is headquartered in San Francisco with major offices outside Seattle, and overseas in Brazil, Canada, China, and Russia.