EA Announces Deal to
Acquire Glu Mobile Inc.
February 8, 2021
Disclaimer
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risks and uncertainties described in EA’s filings with the Securities and Exchange Commission (“SEC”), including EA’s Annual Report on Form 10-K for the fiscal year ended
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are current as of the date hereof. Neither EA nor Glu assumes any obligation to revise or update any forward-looking statement for any reason, except as required by law.
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filed with the SEC on May 20, 2020, and on its website at ir.ea.com. You can find information about the directors and executive officers of Glu in its proxy statement for its
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Transaction Summary
● Electronic Arts Inc. (“EA”) has entered into a definitive agreement to acquire Glu Mobile Inc. (“Glu Mobile”)
● Headquartered in San Francisco, CA, with a nearly 20-year track record of creating and publishing successful mobile
games, Glu Mobile offers a diverse portfolio of top grossing and award-winning original and licensed IP titles
● Glu Mobile stockholders will receive all-cash consideration of $12.50 per share:
─ Implied transaction enterprise value of $2.1 billion
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─ 36% premium to Glu Mobile share price of $9.19 on February 5, 2021
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● The acquisition is to be financed with EA’s cash on hand
● The acquisition is expected to grow EA net bookings and be accretive to underlying profitability
● Transaction expected to close in calendar Q2 of 2021, subject to Glu Mobile stockholder and regulatory approvals
Source: Publicly available information
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Enterprise value based on Glu Mobile unaudited balance sheet as of December 31, 2020
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One trading day prior to announcement of the EA and Glu Mobile definitive merger agreement
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Glu Mobile at a Glance
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Company Overview
• Founded in 2001 and headquartered in San Francisco,
CA (NASDAQ: GLUU)
• Employs nearly 800 game studio, development, central
services and publishing people across five locations in
the U.S., Canada and India
• Operates diverse portfolio of some of the most
successful and recognizable mobile games across
genres including Design Home, Covet Fashion and MLB
Tap Sports Baseball
• Deep bench of creative talent who will continue as
leaders within EA’s organization
• Proven track record in growing both bookings and
underlying profitability
Financial Profile ($mm)
Sources: Company filings.
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For the twelve-month period ending 9/30/20
$320
$385
$423
$544
FY 2017A FY 2018A FY 2019A LTM
FY 2017A FY 2018A FY 2019A LTM 09/30/20
Bookings
Bookings by Title
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Design Home
Covet Fashion
Diner Dash
MLB Tap Sports Baseball
Kim Kardashian: Hollywood
Other
Disney Sorcerer’s Arena
Bookings by Geography
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North America
ROW
APAC
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Strategic Rationale
Accelerates growth
– Creates combined organization with 15+ ongoing live
services across multiple genres
– Reaches global audience of over 100 million combined
players every month
– Glu adds over 500 best-in-class developers with mobile-
first focus
– Contribution from existing franchises almost doubles EA’s
mobile bookings
Creates value
– Addition of expertise in casual sports and lifestyle genres
presents opportunity for new titles based on EA IP
– MLB Tap Sports Baseball offers successful template for EA
SPORTS mobile titles
– Can leverage EA licensing expertise to bring Tap Baseball
to new geographies
– Network effects provide opportunities to cross-promote
both within mobile, and to and from console/PC across
EA’s 430 million strong player network
– Glu’s diverse player base complements EA’s console/PC
portfolio
Combined Market Leading Portfolio
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$544mm LTM bookings
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EA diversified mobile businessGlu core franchises
Design Home Covet Fashion MLB Tap Sports
Kim Kardashian Diner DASH Adventures
Disney Sorcerer’s Arena
Interior design
Source: Company filings
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Last Twelve Months as of 9/30/20
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Last Twelve Months as of 12/31/20
$779mm LTM bookings
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Fashion Mobile baseball
Simulation Classic casual Turn-based RPG
