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Electronic Arts acquires Playdemic for $1.4B

M&A | ANNOUNCEMENT DATE: 23 JUN 2021
WRITTEN BY | 25 Jun 2021
Electronic Arts acquires Playdemic for $1.4B
M&A

💵 Acquisition

  • US-based multiplatform entertainment company Electronic Arts (NASDAQ:EA) acquires Golf Clash developer and publisher Playdemic Ltd. from WarnerMedia’s subsidiary TT Games for $1.4B in cash
  • WarnerMedia divested Playdemic as part of its plan to focus on games based on Warner Bros. IPs

🎬 Playdemic’s History

  • Playdemic was founded in 2010 with a focus on Facebook gaming platform
  • In January 2011, the company was acquired by RockYou, the US-based mobile game publisher that focuses on building in-game ad networks. However, later that year RockYou faced financial difficulties and the founders of Playdemic decided to buy their company back
  • In February 2017, TT Games, the UK-based company known for its video games based on the Lego franchise, announced the acquisition of Playdemic to accelerate the mobile market expansion 

💠 Strategic Rationale

  • Earlier this year EA acquired US-based mobile game developer Glu Mobile for $2.1B, which broadened the company’s mobile games portfolio with such sports titles as Tap Sports Baseball, Deer Hunter, and Tap Sports Fishing as well as some casual games and some others
  • Playdemic will help EA to expand further into the mobile gaming market with a new Golf clash sports game. Currently, the mobile business generates ~13% of the EA’s revenue
  • Playdemic’s executive team will provide EA with expertise in mobile clash games. The clash mechanic that Playdemic specializes in may be introduced into other EA games in the future

🎲 Product

  • Founded in 2010, Playdemic is best known for its 1v1 sports game Golf Clash which has over 80 million downloads globally
  • The downloads peaked in August 2017 when the game was downloaded 2.8 million times
  • Golf Clash is among the leading mobile games in the sports genre in the U.S. and the U.K.
  • Since its launch, the game has amassed over $780m in player spending. In the last year, Golf Clash’s gross revenue reached approximately $185m

Golf Clash

💸 EA’s Latest Acquisitions

  • Playdemic is Electronic Arts’ fourth major acquisition in the past seven months:
    • In May’21, EA announced the acquisition of a Canada­-based PC&console game developer Metalhead Software. The sum of the deal remains undisclosed
    • In Feb’21 EA acquired US-based mobile game developer Glu Mobile (NASDAQ: GLUU) for $2.1B
    • In Dec’20, EA entered into an agreement to acquire UK-based racing games developer Codemasters Group (LON: CDM) for up to $1.2B. The deal was closed in Feb’21. 
  • Recently EA entered top-5 Most Active Strategic Investors in Q1,21 according to Investgame ratings

Sources: EA

Playdemic
  • Established in 2010
  • Headquarters — Wilmslow, United Kingdom
  • Team of 65 employees
  • Founded by Alex Rigby and Paul Gouge
  • Mobile game developer and publisher
Electronic Arts
  • Established in 1982

  • Headquarters — Redwood City, California, USA

  • Founded by Trip Hawkins

  • Team of 9,800+ employees

  • Leading video game developer and publisher

  • Q4 and FY21 Financial Results

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