{"id":14668,"date":"2021-03-04T10:59:12","date_gmt":"2021-03-04T08:59:12","guid":{"rendered":"https:\/\/sijoitusrahastot.org\/?p=14668"},"modified":"2021-03-05T11:01:41","modified_gmt":"2021-03-05T09:01:41","slug":"electronic-arts-stock-shoots-up-by-1-amid-2-4-billion-acquisition-of-glu-mobile","status":"publish","type":"post","link":"https:\/\/sijoitusrahastot.org\/electronic-arts-stock-shoots-up-by-1-amid-2-4-billion-acquisition-of-glu-mobile\/","title":{"rendered":"Electronic Arts Stock Shoots up by 1% Amid $2.4 Billion Acquisition of Glu Mobile"},"content":{"rendered":"\n

eSports giant Electronic Arts had a successful 2020 thanks to soaring demand for gaming. Its stock rose from $110 prior to the pandemic to over $140 by the end of the year.<\/p>\n\n\n\n

As of March 4, 2021, it was trading at $130.50, up by 21.94% over the trailing year. On the said date, it had grown by 2.02% over the previous three-month period. According to the research data analyzed and published by Sijoitusrahastot<\/a>, on February 8, 2021, its share price rose by 1% following an announcement on its acquisition of Glu Mobile. Valued at $2.4 billion, the deal is set to close during the second quarter of the year.<\/p>\n\n\n\n

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The move aims to expand the reach of its mobile gaming segment. Glu Mobile is popular for its Kim Kadarshian Hollywood game. Other hits from the publisher include Disney\u2019s Sorcerer\u2019s Arena, Dine Dash Adventures and Tap Sports Baseball among others.<\/p>\n\n\n\n

Among Glu\u2019s differentiating factors is the fact that it has a focus on high-budget mobile games, mostly containing full 3D visuals. It also offers free-to-play games that make money via micro-transactions.<\/p>\n\n\n\n

The value of the acquisition deal was equivalent to $12.50 per share. That was 36% higher than Glu\u2019s closing price of $9.19 per share when the deal was announced.<\/p>\n\n\n\n

Global Sports Video Games Market Worth Over $11 Billion<\/strong><\/h2>\n\n\n\n

Glu Mobile\u2019s acquisition was Electronic Arts\u2019 second major acquisition. In December 2020, the company outbid Take-Two Interactive to acquire Codemasters for $1.2 billion. Take-Two had bid $973 million in November 2020.<\/p>\n\n\n\n

UK-based Codemasters specializes in racing games such as Grid, Project Cars, F1 and Dirt among others. The acquisition was aimed at extending Electronic Arts\u2019 edge in video game racing. Under the segment, Electronic Arts is renowned for its popular game Need for Speed.<\/p>\n\n\n\n

On February 3, 2021, Codemasters\u2019 shareholders voted in favor of the acquisition, which is set to close in Q1 2021. After the completion of the deal, Codemasters will be owned by Electronic Arts\u2019 subsidiary, Codex Games.<\/p>\n\n\n\n

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