GLUU - Was It Smart for Electronic Arts to Buy Glu Mobile?
On Feb. 8, Electronic Arts (NASDAQ: EA) announced it was acquiring Glu Mobile (NASDAQ: GLUU) at a market cap of $2.4 billion, or $2.1 billion when excluding the cash on Glu Mobile's balance sheet. Glu Mobile, as its name implies, is a mobile games-focused studio behind hits like MLB Tap Sports Baseball and Design Home .
Was it smart for EA to acquire these mobile gaming assets? Let's take a look.
The acquisition for Glu Mobile's assets is an all-cash deal, financed entirely by the $6.7 billion in cash on EA's balance sheet. EA will pay Glu Mobile shareholders $12.50 in cash for every share they own, assuming the deal goes through, a 30%+ premium to where Glu shares were trading earlier in February.
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Was It Smart for Electronic Arts to Buy Glu Mobile?