Video-game giant Electronic Arts Inc. agreed to buy Playdemic Ltd., maker of the Golf Clash mobile game, from AT&T Inc.’s Warner Bros. Games for $1.4 billion in cash.
The company, known for its “FIFA” and “Madden NFL” video games, is buying Playdemic from Warner Bros Games, a unit of WarnerMedia that is being hived off from AT&T Inc .
Series of acquisitions
The gaming industry has also seen a series of acquisitions in the past few months, including Microsoft’s $7.5 billion acquisition of ZeniMax Media and Swedish video game group Embracer buying Gearbox and Easybrain.
Golf Clash, a success story developed by Playdemic for iOS, Android, and Facebook, has more than 80 million downloads that at the moment endorse both its good results and the good investment that EA has just made.
This step represents “a part of EA’s mobile growth strategy”, adding to the network of almost 500 million players who currently have assets around the world in its more than 15 services.
“Playdemic’s expertise in creating mobile games loved by gamers around the world, combined with EA’s industry-leading intellectual property, presents opportunities for expanding other franchises and for the future growth of mobile experiences,” stated the studies.
Warner Bros. intellectual property
Paul Gouge, CEO of Playdemic, said the studio was founded to be at the forefront and deliver innovative experiences to gamers. Now they can continue on their way and do more ambitious projects thanks to the support of EA.
“Joining EA, one of the most successful gaming companies in the world, is an important step in our journey and we are excited to continue developing Golf Clash and new titles as part of the EA family,” said Gouge.
For Warner Bros. Games, unloading Playdemic fits with its strategy of focusing on games based on Warner Bros. intellectual property, unit President David Haddad said in the statement. The gaming division is part of AT&T’s WarnerMedia, which is linking up with Discovery Inc. in a blockbuster merger.
While EA shares were down 0.1 percent to $140.68 in New York trading at 9:39 a.m, AT&T was up 0.2 percent to $28.84.