Seeking to increase its dominance in the gaming industry, EA (Electronic Arts) announced the acquisition of mobile game developer Glu Mobile for $2.1 billion. The company has signed one of the biggest deals in the gaming industry and aims to make more money from micro-transactions from mobile devices.
In February, EA announced the start of acquisition talks with Glu Mobile. EA, which recently acquired Codemasters for $1 billion, said it had signed with Glu Mobile, a former chief executive. The U.S.-based company, which has 500 developers and 800 employees, will contribute to EA’s mobile gaming division.
Electronic Arts acquires Glu Mobile
Commenting on the deal, Glu CEO and former EA executive Nick Earl said of his future goals:
“Together, we will accelerate a strategic approach that prioritizes mobile devices and drive innovation through creative leadership. On the one hand, we will provide our players with world-class interactive experiences.”
The CEO of the firm, which recently acquired a small stake in Chinese gaming company Tencent, also said there was an opportunity for mobile apps such as Kim Kardashian: Hollywood, MLB Tap Sports Baseball, and Design Home to develop faster.
EA CEO Andrew Wilson said of the acquisition:
“Our talented teams and strong combination of intellectual property position us as leaders in the world’s largest gaming category. We are creating a powerful growth engine that will expand our existing games and deliver more amazing new experiences in sports, lifestyle, and casual spaces for players everywhere.”
Under the deal, Glu’s mobile games will continue to be released by EA. Emphasizing that its existing games reach 100 million active users per month, the gaming giant made concept presentations for a new game with another mobile developer Skillz earlier this week.