Perhaps Electronic Arts figured it was about time to start milking the cash cow that is mobile gaming: it has announced its intent to buy publisher GluMobile, known for its freemium all-encompassing titles like "Kim Kardashian: Hollywood," "Cooking Dash," and 2013's "Frontline Commando: D-Day," for $2.1 billion — a 36% premium on its market capitalization up to today.
Unlike many other companies, Glu's 2020 ended with revenue gains as it reported fourth quarter revenues of $141 million (up 32% year-over-year) and full-year income of $20.4 million (up 129%). Bookings for brand-aligned games have increased with clients including the likes of Disney as fans spend more idle time during the pandemic and their money on in-game currencies and perks.
Electronic Arts — which has its teeth sunk into its big-name franchises like "The Sims," "Plants vs. Zombies," its sports league simulators, and the Star Wars series — says it's going for scale with the acquisition of Glu's 500 developers (it also has 300 other discretionary staff) and its intellectual property.
GLUU shares spent the day around its EA-inflated valuation and closed up 35%. EA stepped up 2.6%. The deal is expected to close on June 30.
- Electronic Arts