Whether it’s for dating or gaming, mobile devices have changed the way people have sought out personal connections and entertainment. The change in user behavior translated into big business for app companies. This past week Bumble was all over the news with its IPO breaking $2 billion. Meanwhile, Electronic Arts made one of the most expensive video game acquisitions after picking up Glu Mobile. For more details on these stories, read on for this edition of Mobile Monday!
Bumble’s IPO Breaks $2 Billion
Dating app Bumble made headlines last week for raising $2.2 billion in an IPO. Bloomberg reported the company market valuation is approximately $8.2 billion following the IPO, surpassing previous expectations of between $6 billion and $8 billion. Bumble is the second big dating app to go public, after Match.com parent Match Group’s 2015 IPO. The company also made news as shares soared because it meant that 31-year-old CEO and founder Whitney Wolfe Herd would become the world’s youngest self-made woman billionaire.
Bumble said it plans to use the funds to boost its paying user base and increase investments in untapped markets. Additionally, the company said part of the proceeds will go for general corporate purposes and partially repay loans. The dating app company previously said in a filing to the US Securities and Exchange Commission it will focus on entering new markets in Europe, Asia and Latin America, while also looking for ways to increase revenue from paying users. App analytics company Apptopia estimated Bumble was the fifth-highest grossing app in the US during 2020, with revenue of $109 million. Its main competitor, Match Group’s Tinder, ranked second with $220 million.
EA acquires Glu Mobile in $2.1 Billion Deal
Electronic Arts announced that it will acquire mobile game studio Glu Mobile for $2.1 billion, which is one of the most costly video game acquisitions in history. Glu Mobile is a mobile game development studio with a few big-ticket names on its roster including Diner Dash, Kim Kardashian Hollywood, WWE Universe, and Disney Sorcerer’s Arena. The studio reports that their game catalog has earned more than $1.32 billion over the past year. EA said they picked up Glu Mobile to grow their mobile portfolio into sports, RPG, lifestyle, casual, and “midcore” games. As a part of the deal, Glu Mobile will get access to EA’s global licensing and distribution capabilities.
EA has been on a roll with game studio acquisitions. The company beat Take-Two Interactive to acquire DiRT developer Codemasters in January for $1.2 billion. “Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business,” said Andrew Wilson, CEO of Electronic Arts. “With a deep IP portfolio and an expanding global audience, we’ll deliver more exciting experiences for our players and drive further growth for Electronic Arts.”
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