Electronic Arts to Buy Golf Clash Maker for $1.4 Billion
(Bloomberg) -- 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 Playdemic acquisition is part of EA’s mobile growth strategy, in which it has built a stable of more than 15 live services in an array of game categories, the company said in a statement Wednesday. Golf Clash, in which players around the world can compete in real time, has had more than 80 million global downloads.
EA is best known for its Madden NFL, Sims and Battlefield franchises. The Redwood City, California-based company earlier this month became one of several high-profile cyberattack victims, with hackers stealing its source code and related internal tools.
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.
LionTree served as financial adviser to AT&T on the deal.
In a note, Mirabaud Securities Ltd.’s Neil Campling called the move “desperate” and said EA appears to have paid a premium for a game that’s been out for years.
Read more: EA Analysts See Merit in Playdemic Deal
Taking a more positive view, Bloomberg Intelligence analyst Matthew Kanterman said in a note that “the ability to launch new games leveraging EA licenses such as PGA Tour could help juice sales and justify the price.”
EA shares were down 0.8% to $139.67 at 11:19 a.m. in New York. AT&T was little changed at $28.76.
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