Electronic Arts Inc. said Monday it is acquiring Glu Mobile Inc. in a $ 2.4 billion deal aimed at expanding an area in which the video game giant’s mixed success.
The cash for all money, which is expected to end in the June quarter, will bring Glu’s mobile games such as ‘Kim Kardashian: Hollywood’, ‘Diner Dash’ and ‘MLB Tap Sports Baseball’ to EA. Glu shareholders will receive $ 12.50 per share, which is a 36% premium to Glu’s closing price, EA said.
Glu shares rose 34% to $ 12.56 on Monday.
“We made this deal because we believe mobile is the fastest growing platform on the planet” for video games, said EA CEO Andrew Wilson. “The combination of these two companies creates a leader in lifestyle and sports.”
Mr. Wilson added that Glu, which has about 800 employees, will be able to build games based on EA’s intellectual property and use its marketing expertise and global presence to grow. Glu will be integrated into EA, but will continue to work independently on the games in its portfolio, with CEO Nick Earl, who previously served as head of EA’s mobile division.