Electronic Arts to takeover game developer Glu Mobile
The acquisition:
Electronic Arts, the video game company headquartered in California, is all set to purchase Glu Mobile for $2.4 billion. With the immediate spread of this news, the Glu shares rose to 34% on February 9th, 2021. The acquisition will be over by the second quarter of 2021. After acquiring the British game developer Codemasters, this is the next acquisition of the company. The cash amount of $12.50 will be paid to the Glu shareholders, for every share that they own. Following the official acquisition, the 800 Glu employees will function independently, developing their own projects and working on newer EA titles.
About Glu Mobile:
Glu Mobile, the California-based publisher, and developer of mobile phone games was established in 2004. The company provides services to many platforms such as Amazon, Android, Google Chrome, and Windows Phone. The company is known for popular mobile phone games like ‘Ancient Empires’, ‘Monopoly’, ‘Indestructible’, etc. It also secured much attention from the fans and gaming experts during its release of ‘Kim Kardashian: Hollywood’ in 2014. Throughout the years, Glu has focused on big-budget games based on 3D visuals. It has also provided free-to-play video games and churned profits through microtransactions.
The Impact:
Currently, Electronic Arts has more than 100 million active users of mobile phones per month. Through this purchase, the company is looking forward to extending its player base and enlarging its portfolio. As far as Glu is concerned, this acquisition will be beneficial in terms of distribution capabilities and global licensing. The global presence and marketing strategies of EA would be an added advantage for Glu. According to Andrew Wilson, the Chief Executive Officer of EA, the platform of mobile gaming is the biggest platform in the world. Such a union would be offering improved and enhanced experiences to the gamers.
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