How Glu Mobile Shares Rose 42% Last Month
Shares of Glu Mobile (NASDAQ: GLUU) gained 41.7% in February, according to data from S&P Global Market Intelligence. The big gains rested on one simple event: Video games veteran Electronic Arts (NASDAQ: EA) decided to buy the company behind mobile hit games like Kim Kardashian: Hollywood, Disney Sorcerer's Arena, and Covet Fashion.
Glu shares soared 35% higher on Feb. 9, the day after EA announced the all-cash buyout deal at an implied enterprise value of $2.1 billion. EA expects Glu to pull its weight by generating significant sales and positive operating profits right away. The acquisition should close in the second calendar quarter of 2021, after going through the usual gauntlet of regulatory reviews and shareholder votes.
"As part of Electronic Arts, we will continue capitalizing on the opportunities ahead in the expanding mobile gaming industry," Glu CEO Nick Earl said in the press release.
Source Fool.com
