8-KAcquisitions & DispositionsRegulation FD

ELECTRONIC ARTS INC. 8-K Report, Acquisition Completed (Apr 29, 2021)

Filed April 29, 2021For Securities:EA

Summary

Electronic Arts Inc. (EA) has officially completed its acquisition of Glu Mobile Inc. (Glu) on April 29, 2021. This strategic move involved a merger where Glu now operates as a wholly-owned subsidiary of EA. The acquisition was executed through a cash transaction, with Glu shareholders receiving $12.50 in cash for each share of Glu common stock, excluding shares owned by EA or those for which appraisal rights were exercised. Outstanding Glu stock options and restricted stock units were also addressed in the transaction, with vested awards converted to cash and unvested awards converted to EA stock options and RSUs under modified terms. This acquisition is a significant development for EA, signaling a strong push into mobile gaming and potentially expanding its intellectual property portfolio within this rapidly growing segment. Investors should monitor how EA integrates Glu's operations and IP, as well as the impact on EA's financial performance, particularly in its mobile segment. The company also furnished a press release related to the completion of this merger.

Key Highlights

  • 1Electronic Arts Inc. (EA) has completed the acquisition of Glu Mobile Inc. (Glu) as of April 29, 2021.
  • 2The acquisition was executed via a merger, with Glu becoming a wholly-owned subsidiary of EA.
  • 3Glu shareholders received $12.50 in cash per share for their Glu common stock.
  • 4Vested Glu stock options and restricted stock units were converted into cash payments.
  • 5Unvested Glu stock options and restricted stock units were assumed by EA and converted into EA equity awards.
  • 6The transaction was structured as a merger agreement dated February 8, 2021.
  • 7EA issued a press release on April 29, 2021, to announce the completion of the merger.

Frequently Asked Questions

The acquisition of Glu Mobile is significant for Electronic Arts as it represents a major expansion into the mobile gaming market. Glu has a strong portfolio of mobile games and a substantial player base, which is expected to bolster EA's presence and revenue streams in this high-growth sector.

Glu Mobile shareholders received $12.50 in cash for each share of Glu common stock they owned, excluding certain shares held by EA or its subsidiaries, or those for which shareholders properly demanded appraisal rights under Delaware law.

Vested Glu stock options were converted into cash payments based on the difference between the merger consideration and the exercise price. Vested restricted stock units were converted into cash payments equal to the merger consideration. Unvested options and restricted stock units were assumed by Electronic Arts and converted into equity awards of EA stock, with terms adjusted according to the merger agreement.

The acquisition of Glu Mobile Inc. was officially completed on April 29, 2021.