Here’s Why Electronic Arts in Acquiring Glu Mobile for $2.1 Billion


Video game sales are still hitting record highs.

For all of 2020, video game spending just in the U.S. totaled $56.9 billion, which is up 27% year over year, according to NPD. About $7.7 billion of that was spent in December 2020 .

In addition, according to NPD, more people played mobile games in 2020.

In fact, they note:

“The U.S. and Canadian mobile gaming market saw significant growth in 2020, with mobile’s accessibility as a platform creating a go-to option for consumers looking for new or expanded entertainment options while under restrictions and lockdowns. Players are more engaged than ever before, with the average number of hours per week spent playing games on a smartphone or tablet increasing to eight hours in 2020 from six hours a week in 2019.”

“The number of mobile gamers increased across all age groups, with those ages 45 and older climbing 17% over 2019, followed by the 25 to 44 age group with a 13% increase. The 2 to 12 and 13 to 24 age groups experienced respective increases of 9% and 3% over 2019.”

Most of that growth was driven by the pandemic.

Going forward, mobile gaming could pass $120 billion in sales this year.   So it comes as no surprise that Electronic Arts is acquiring Glu Mobile for $2.1 billion.

“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,” they added.

After this acquisition, we could see other major companies making similar acquisitions.


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