Here’s everything investors in GLUU stock need to know about the deal with EA.
- Electronic Arts is acquiring Glu Mobile for $2.1 billion.
- The company will be using cash to complete this transaction.
- This will have it paying holders of GLUU stock $12.50 for each share that they own.
- That’s a 36% premium over the stock’s closing price on Friday.
- The total value of the deal is $2.4 billion when taking into account the $364 million of cash that Glu Mobile holds.
- EA says that it expects the acquisition to be accretive to its business immediately.
- It’s also estimating that the deal will grow underlying profitability within the first year.
- The goal of the merger is to beef up EA’s mobile game offerings and create a leader in the space.
- The two combines have a total of $1.32 billion in bookings over the last when combined.
- Both Electronic Arts’ and Glu Mobile’s Boards of Directors have approved the acquisition deal.
- GLU’s board is advising holders of its stock to vote in favor of the transactions.
- It also still needs approval from regulators and to complete other customary closing conditions.
- So long as everything proceeds smoothly, the two companies are expecting the deal to close in the second quarter of 2021.
GLUU stock was up 33.9% and EA stock was up slightly as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.