EA buys Playdemic for $1.4 billion in power play for sports dominance

EA makes another big billion-dollar mobile acquisition as it aggressively expands its IP base for widespread future earnings.

@DeekeTweak
Published Wed, Jun 23 2021 3:16 PM CDT   |   Updated Wed, Jul 21 2021 4:33 AM CDT

After buying Glu Mobile and Codemasters for a combined $3.3 billion, EA makes another billion-dollar power acquisition.

EA buys Playdemic for $1.4 billion in power play for sports dominance 43 | TweakTown.com

EA is going all-in on mobile. The company recently bought Glu Mobile for $2.1 billion in an effort to solidify its smartphone gaming business, and Glu is expected to be the literal glue that holds this business together as developers focus on a myriad of projects.

"We are forming a powerful growth engine that will expand our current games and deliver more amazing new experiences across sports, lifestyle, mid-core, and casual for players everywhere," EA said in a press release.

Now EA has made another billion-dollar mobile buyout. This time it's Playdemic, the developers behind the popular Golf Crash series. Warner Bros. Games has sold Playdemic to EA for $1.4 billion in cash.

EA is clearly hitting two birds with one stone with the Playdemic purchase--mobile gaming and sports--and the Golf Crash series will likely be nestled under the EA Sports label. This buyout will help EA diversify its cashflows on a platform-basis and deepen its focus on live service earnings.

For the immediate future, EA expects to make a record-breaking $7.3 billion in revenues this fiscal year driven by EA Sports games and Battlefield.

The company is enacting a new three-part plan that is now the basis of its business:

  1. Premium/paid experiences (FIFA, Battlefield, Jedi Fallen Order, Dragon Age, etc)
  2. Live services (Apex Legends, Ultimate Team)
  3. Expansion to new platforms, business models, geographies (mobile games, cross-connected ecosystems, Apex in China)
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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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