EA To Acquire Glu Mobile In A Deal Worth Billions

EA has announced that it is acquiring a mobile game developer called Glu Mobile. For those who are unfamiliar, Glu Mobile is the developer behind games like Kim Kardashian: Hollywood, Diner Dash: Adventures, and a number of other celebrity-focused games. The vast majority of titles developed by Glu are free to play and are supported by micro-transactions.

EA is spending $2.4 billion, all in cash, with the deal expected to close in the quarter that ends June 30. EA CEO Andrew Wilson said the deal was made because EA believes mobile is the fastest-growing platform. The acquisition will double the size of EA’s mobile business and expand its portfolio significantly.

While many gamers despise micro-transactions, EA has stated in the past that it will keep pursuing micro transactions. These transactions for small amounts of money are massive profit makers for developers. It appears all 800 employees of Glu will continue with the studio operating independently.

Glu will be able to produce mobile titles based on EA intellectual property along with its own projects. The deal will also help Glu to expand its global reach and leverage EA’s marketing machine.