Accelerates the growth of Electronic Arts’
mobile business through development of new sports, lifestyle,
casual, and mid-core games
Creates a market-leading portfolio of more than
15 top live services across multiple fast growing mobile genres
Expands Electronic Arts’ nearly half a billion
strong player network to reach a broader global audience
Electronic Arts Inc. (NASDAQ: EA), a global leader in
interactive entertainment, and Glu Mobile Inc. (NASDAQ:
GLUU), a leading global developer and publisher of mobile games
including Design Home, Covet Fashion, and MLB Tap Sports Baseball,
have entered into a definitive agreement under which Electronic
Arts will acquire Glu Mobile. Under the terms of the agreement, EA
will acquire Glu for $2.1 billion in enterprise value. Glu
stockholders will receive $12.50 in cash for each share of Glu
stock, representing a 36% premium to Glu’s closing share price on
February 5, 2021. Upon closing, the acquisition will be immediately
accretive to Electronic Arts’ total net bookings, and is expected
to grow underlying profitability beginning in its first year.
The acquisition will immediately add significant scale to
Electronic Arts’ mobile games business. The combination of
Electronic Arts and Glu creates a leading mobile product portfolio
that includes more than 15 top live services across fast-growing
genres with a combined $1.32 billion in bookings over the last
twelve months. Bringing together the best-in-class mobile
development teams at Glu and Electronic Arts’ mobile business, with
a collective portfolio of powerful IP in sports, lifestyle, RPG,
casual and other genres, and leveraging Electronic Arts’ marketing
and distribution strength to generate global reach, the combined
organization will build on EA’s network of 430 million players,
including more than 100 million monthly active players in mobile,
and expand to new audiences and demographics all over the
world.
“Our acquisition of Glu combines amazing teams and
deeply-engaging products to create a mobile games leader with
proven expertise across many fast-growing genres,” said Andrew
Wilson, CEO of Electronic Arts. “Mobile continues to grow as the
biggest gaming platform in the world, and with the addition of
Glu’s games and talent, we’re doubling the size of our mobile
business. With a deep IP portfolio and an expanding global
audience, we’ll deliver more exciting experiences for our players
and drive further growth for Electronic Arts.”
“This transaction is the culmination of the tremendous work of
the Glu team to deliver world-class interactive experiences for our
players, while driving business momentum that has led to strong
financial and operational results. It represents a terrific outcome
for all of our stockholders and other key constituents,” said Nick
Earl, CEO of Glu. “As part of Electronic Arts, we will continue
capitalizing on the opportunities ahead in the expanding mobile
gaming industry.”
The strategic rationale for the acquisition includes:
- Creating a Leading Mobile Portfolio Across Key Genres.
The complementary nature of Electronic Arts and Glu’s successful
products will create a portfolio that spans many of the biggest and
most popular genres of mobile games, including sports, RPG,
lifestyle, casual, and mid-core games. The combined organization
will have a demographically diverse audience, with significant
opportunities for franchise and market expansion.
- Expanding Successful, Scalable Live Services. Both
Electronic Arts and Glu have proven success creating mobile live
service games that deeply engage large communities over many years
and deliver strong recurring revenue. The combined expertise of the
two organizations unlocks potential for further success. Glu’s
franchises like Design Home, Covet Fashion, and MLB Tap Sports
Baseball will benefit from Electronic Arts’ global licensing and
distribution capabilities to bring them to new markets and more
players. Glu’s expertise in building and monetizing sports and
casual mobile games, combined with Electronic Arts’
industry-leading IP in sports and beyond, will accelerate the
creation of exciting new experiences for broad audiences.
- Experienced Creative Leadership & Enhanced Team
Capabilities. Glu brings a talented team including more than
500 mobile game developers (and nearly 800 total employees), adding
significant scale to Electronic Arts’ mobile-focused organization.
Glu’s creative leaders are established and well-known to Electronic
Arts, with similar focus on creating highly successful mobile games
with longevity. The combination of proven mobile leadership, deeply
talented teams, genre expertise, long-running franchises and IP,
and technology across the two organizations will be a catalyst to
delivering new experiences and further growth.
- Accelerating Growth. The combination of Electronic Arts
and Glu will be a mobile growth engine. With strong, recurring
revenue across a leading portfolio of live services, strength in
key mobile genres, a deep roster of owned and licensed IP, access
to a large-scale and growing player network, and ability to reach
into new regions and markets, the acquisition will be immediately
accretive to EA’s total net bookings and is expected to grow
underlying profitability beginning in its first year.
An investor presentation outlining the key aspects of the
planned acquisition is available on EA’s investor relations
website, at ir.ea.com.
Details on the Proposed Transaction
The board of directors of each of Electronic Arts and Glu Mobile
have approved the transaction and the Glu board recommends that Glu
stockholders approve the transaction and adopt the merger
agreement. Under the terms of the agreement, Glu stockholders will
receive $12.50 in cash for each share of Glu stock, representing an
equity value of $2.4 billion, and a total enterprise value of $2.1
billion including Glu's net cash of $364 million. The transaction
is anticipated to close in the quarter ending June 30, 2021,
subject to approval by the Glu stockholders, the receipt of
required regulatory approvals and other customary closing
conditions.
About Electronic Arts
Electronic Arts (NASDAQ: EA) is a global leader in digital
interactive entertainment. The Company develops and delivers games,
content and online services for Internet-connected consoles, mobile
devices and personal computers. In fiscal year 2020, EA posted GAAP
net revenue of $5.5 billion. Headquartered in Redwood City,
California, EA is recognized for a portfolio of critically
acclaimed, high-quality brands such as EA SPORTS™ FIFA,
Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for
Speed™, Titanfall™ and Plants vs. Zombies™. More information about
EA is available at www.ea.com/news.
EA SPORTS, Ultimate Team, Battlefield, Apex Legends, The Sims,
Need for Speed, Titanfall and Plants vs. Zombies are trademarks of
Electronic Arts Inc. Madden, NFL and FIFA are properties of its
respective owners and used with permission.
About Glu Mobile
Glu Mobile (NASDAQ:GLUU) is a leading developer and publisher of
mobile games. Founded in 2001, Glu is headquartered in San
Francisco with additional locations in Foster City, Toronto and
Hyderabad. With a history spanning over a decade, Glu’s culture is
rooted in taking smart risks and fostering creativity to deliver
world-class interactive experiences for our players. Glu’s diverse
portfolio features top-grossing and award-winning original and
licensed IP titles including, Covet Fashion, Deer Hunter, Design
Home, Diner DASH Adventures, Disney Sorcerer’s Arena, Kim
Kardashian: Hollywood and MLB Tap Sports Baseball available
worldwide on various platforms including the App Store and Google
Play. For more information, visit www.glu.com or follow Glu on
Twitter, Facebook and Instagram.
Covet Fashion, Deer Hunter, Design Home, Diner DASH, Tap Sports,
Glu and Glu Mobile are trademarks of Glu Mobile Inc.
Advisors
J.P. Morgan Securities LLC is serving as exclusive financial
advisor to Electronic Arts and Simpson, Thacher & Bartlett LLP
is serving as legal counsel to Electronic Arts. Goldman Sachs &
Co. LLC, Morgan Stanley & Co. LLC and UBS Securities LLC are
serving as financial advisors to Glu. Fenwick & West LLP is
serving as legal counsel to Glu.
Forward-Looking
Statements
This communication may contain statements, other than statements
of current or historical fact, that constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements with respect to the
proposed merger of a wholly owned subsidiary of Electronic Arts
with and into Glu Mobile on the terms and subject to the conditions
set forth in the Agreement and Plan of Merger, dated as of February
8, 2021 to which Electronic Arts and Glu are party (the “Merger
Agreement”), and the benefits and the anticipated timing of the
proposed transaction. In some cases, you can identify
forward-looking statements by terminology such as “anticipate,”
“believe,” “expect,” “intend,” “estimate,” “project,” “forecast,”
“plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,”
“should,” “could,” and similar expressions or expressions of the
negative of these terms. These forward-looking statements are not
guarantees of future performance and reflect management’s current
expectations. Electronic Arts’ actual results could differ
materially from those discussed in the forward-looking statements.
Some of the factors which could cause Electronic Arts’ results to
differ materially from its expectations include the following: the
impact of the announcement of the merger on Electronic Arts’ and
Glu’s business and operating results, including the effect of the
announcement of the merger on the ability of Electronic Arts or Glu
to retain and hire key personnel and maintain relationships with
players, partners and others with whom Electronic Arts or Glu do
business; the occurrence of any circumstance or any other events
that could give rise to the termination of the proposed
transaction, or the failure to obtain Glu’s stockholder approval or
failure to satisfy any other conditions precedent to consummate the
proposed transaction, including the receipt of all necessary
regulatory approvals on a timely basis or at all; Electronic Arts’
ability to successfully integrate Glu’s operations and employees;
risks that the merger disrupts current ongoing business operations;
risks of litigation and/or regulatory actions related to the
merger; the impact of the COVID-19 pandemic; Electronic Arts’
ability to realize the anticipated benefits of acquisitions; and
other factors described in Part II, Item 1A of Electronic Arts’ or
Glu’s latest Quarterly Report on Form 10-Q under the heading “Risk
Factors,” as well as in other documents Electronic Arts or Glu have
filed with the Securities and Exchange Commission, including
Electronic Arts’ Annual Report on Form 10-K for the fiscal year
ended March 31, 2020 and Glu’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2019.
These forward-looking statements are current as of the date
hereof. Neither Electronic Arts nor Glu assumes any obligation to
revise or update any forward-looking statement for any reason,
except as required by law.
Additional Information and Where to
Find It
This communication may be deemed to be solicitation material in
respect of the proposed acquisition of Glu Mobile by Electronic
Arts. In connection with the proposed merger, Glu intends to file
with the SEC a proxy statement regarding the proposed transaction
and mail or otherwise provide a proxy statement and a proxy card to
each stockholder entitled to vote at the special meeting relating
to the proposed merger. Each of Electronic Arts and Glu may also
file other relevant documents with the SEC regarding the proposed
transaction. This document is not a substitute for the proxy
statement or any other document that Electronic Arts or Glu may
file with the SEC. The definitive proxy statement/prospectus (if
and when available) will be mailed to stockholders of Glu.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH
THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE
DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME
AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security
holders will be able to obtain free copies of the proxy statement
(if and when available) and other documents containing important
information about Electronic Arts, Glu and the proposed
transaction, once such documents are filed with the SEC through the
website maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by Electronic Arts will be available
free of charge on Electronic Arts’ website at ir.ea.com or by
contacting Electronic Arts’ Investor Relations department at
ir@ea.com. Copies of the documents filed with the SEC by Glu will
be available free of charge on Glu’s website at
www.glu.com/investors or by contacting Bob Jones / Taylor Krafchik,
Ellipsis, at IR@glu.com.
Certain Information Regarding
Participants in the Solicitation
Electronic Arts and Glu Mobile and certain of their respective
directors and executive officers and other members of management
and employees may be deemed to be participants in the solicitation
of proxies in respect of the proposed merger. You can find
information about the directors and executive officers of
Electronic Arts, including a description of their direct or
indirect interests (by security holdings or otherwise), in its
proxy statement for its 2020 annual meeting of stockholders, which
was filed with the SEC on June 19, 2020, and Electronic Arts’
Annual Report on Form 10-K for the fiscal year ended March 31,
2020, which was filed with the SEC on May 20, 2020, and on its
website at ir.ea.com. You can find information about the directors
and executive officers of Glu, including a description of their
direct or indirect interests (by security holdings or otherwise),
in its proxy statement for its 2020 annual meeting of stockholders,
which was filed with the SEC on April 28, 2020, and in its Annual
Report on Form 10-K for the fiscal year ended December 31, 2019,
which was filed with the SEC on February 28, 2020, and on its
website at www.glu.com/investors. Other information regarding the
potential participants will be included in the proxy statement and
other relevant documents filed with the SEC if and when they become
available. Investors should read the proxy statement carefully when
it becomes available before making any voting or investment
decisions. You may obtain free copies of these documents from
Electronic Arts or Glu using the sources indicated above.
Category: Company News
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version on businesswire.com: https://www.businesswire.com/news/home/20210208005854/en/
Electronic Arts Media Relations: John Reseburg VP, Global
Communications 650-628-3601 jreseburg@ea.com
Electronic Arts Investor Relations: Chris Evenden VP,
Investor Relations 408-627-0608 cevenden@ea.com
Glu Mobile Media Relations: George Sard / John
Christiansen / Celia de Pentheny O’Kelly Sard Verbinnen & Co.
Glu-SVC@sardverb.com 212-687-8080 / 415-618-8750
Glu Mobile Investor Relations: Bob Jones / Taylor
Krafchik Ellipsis IR@glu.com 646-776-0886
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