Electronic Arts Is Buying Glu Mobile In $2.4B Deal

Electronic Arts Inc. EA will buy Glu Mobile GLUU in a $2.4 billion deal.

What To Know: 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 Feb. 5. This represents an equity value of $2.4 billion, and a total enterprise value of $2.1 billion including Glu's net cash of $364 million.

"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,” said Andrew Wilson, CEO of Electronic Arts. “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."

Why It's Important: Glu Mobile is a U.S.-based company that develops and markets games appealing to a broad group of users of smartphones and tablet devices. These games are accessible through direct-to-consumer digital storefronts like the Apple App Store, Google Play Store, and Amazon Appstore.

The firm generates revenue through in-app purchases and in-game advertising.

Price Action: Glu Mobile shares were trading up 35% to $12.69 at publication time. The stock has a 52-week high of $10.85 and low of $3.98.

Zynga Inc. ZNGA shares were trading up 6% at $11.70. The stock has a 52-week high of $11.19 and a 52-week low of $5.65.

Zynga is a U.S.-based company that develops, markets and operates social games as live services played on mobile platforms such as iOS and Android and social networking sites like Facebook.