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  • Friday, March, 2021| Today's Market | Current Time: 08:48:21
  • Electronic Arts Stock Shoots up by 1% Amid $2.4 Billion Acquisition of Glu Mobile

    Published on March 5, 2021

    eSports giant Electronic Arts had a successful 2020 thanks to soaring demand for gaming. Its stock rose from $110 prior to the pandemic to over $140 by the end of the year.

    As of March 4, 2021, it was trading at $130.50, up by 21.94% over the trailing year. According to Electronic Arts’ estimates, the global sports video games market is worth $11 billion. From this total, $7 billion comes from PC and console while mobile contributes $4.3 billion.

    Electronic Arts Projects $5.6 Billion Net Revenue for Fiscal 2021

    According to the research data analyzed and published by Sijoitusrahastot, on February 8, 2021, its share price rose by 1% following an announcement on its acquisition of Glu Mobile.

    Valued at $2.4 billion, the deal translated to $12.50 per share for Glu’s shareholders. That was a 36% premium on its closing price of $9.19 when the deal was announced. In December 2020, Electronic Arts Sports acquired Codemasters for $1.2 billion, outbidding Take-Two Interactive. Through the two deals, the company hopes to expand its mobile reach as well as that of its racing segment. It had 231 million players and viewers in 2020. In 2021, it plans to expand the number to 500 million.

    In Q3 FY21, Electronic Arts posted a 5% increase in net revenue, rising from $1.59 billion in Q3 FY20 to $1.67 billion. Net bookings during the period soared by 18.8% from $2 billion to $2.4 billion. Though console was the main contributor, generating $1.8 billion, it only posted a 17% YoY growth. Comparatively, the PC & Others segment grew by 40% to $399 million.

    For the 2020 calendar year, net bookings rose by 8% to $5.96 billion. In fiscal 2021 which ends on March 31, 2021, the company projects that net bookings will total $6.1 billion. Net revenue for the period is forecast to be around $5.6 billion and net income at $742 million.