US EA Acquires Glu Mobile for 2.68 Trillion KRW

(Source: ANDREW HARRER / BLOOMBERG NEWS)

[Asia Economy Reporter Yujin Cho] The major U.S. game company Electronic Arts (EA) is acquiring the mobile game company Glu Mobile.

On the 8th (local time), The Wall Street Journal (WSJ) reported that EA has agreed to acquire Glu Mobile for $2.4 billion (approximately 2.68 trillion KRW). The acquisition price reflects a premium of about 36% over the closing price on the 5th and will be paid entirely in cash.

Andrew Wilson, CEO of EA, said, "Glu Mobile is the fastest-growing mobile platform on this planet," adding, "This combination has made us the market leader in the lifestyle and sports sectors."

Founded in 2001, Glu Mobile owns mobile games such as "Kim Kardashian: Hollywood" and "Diner Dash," and has about 800 employees.

Due to the surge in the mobile game market amid the COVID-19 pandemic, its revenue in the fourth quarter of last year increased by 25% compared to the same period the previous year, reaching $141.4 million, while net profit nearly doubled to $23.9 million.

CEO Wilson added, "Glu Mobile will be able to secure growth potential by leveraging EA's intellectual property (IP) and other development assets as well as its global presence." Glu Mobile will continue to operate independently even after being acquired by EA.

EA, along with Activision Blizzard based on market capitalization, is one of the two major U.S. game companies, owning famous games such as "FIFA," "Battlefield," and the mobile game "Star Wars: Galaxy of Heroes."

Following the announcement of the acquisition, Glu Mobile's stock price rose 34% after the market closed the previous day, reaching $12.56.

This content was produced with the assistance of AI translation services.