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EA buys gaming producer Glu Mobile for $2.4 billion

The gaming giant is experiencing a wave of acquisitions. Glu's existing franchises almost double EA’s mobile bookings

Electronic Arts logo on screen at the New York Stock Exchange
Electronic Arts logo on screen at the New York Stock Exchange, USA, September, 2016. Photo: REUTERS/Brendan McDermid/ File Photo
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  • Glu, based in San Francisco, received several takeover offers last year. EA is experiencing a wave of acquisitions, as it has a strong balance sheet;
  • In December, the company acquired the British Codemasters for $1.2 billion.

On Monday, Electronic Arts announced video game producer Glu Mobile‘s acquisition for $2.4 billion, strengthening its mobile portfolio with games such as Design Home, Covet Fashion, and MLB Tap Sports Baseball.

READ ALSO: Mobile experiences and subscription online services among Electronic Arts’ main bets to grow on top of its large franchises

The US-based video game developer offered $12.50 for each share of Glu, a premium of about 33% compared to Monday’s closing price. Electronic Arts (EA) shares rose 1.4% after the session closed, while Glu shares rose 34%. The deal, which is expected to be completed in the quarter ending in June, estimates Glu’s market value at $2.1 billion.

READ ALSO: Activision Blizzard ends 2020 with 400 million players; Call Of Duty alone accounted for over one-fourth of them

Glu, based in San Francisco, received several takeover offers last year. EA is experiencing a wave of acquisitions, as it has a strong balance sheet. In December, the company acquired the British Codemasters for $1.2 billion.

In a presentation to investors, EA explained that Glu’s acquisitions mean more players to the company’s ecosystem – around 100 million – in addition to “over 500 best-in-class developers with mobile-first focus”.

Glu’s existing franchises almost double EA’s mobile bookings.

Co-written and translated by LABS

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