Electronic Arts Inc. (NASDAQ:EA) announced today the completion of its acquisition of Playdemic, a Manchester-based mobile games studio best known for its hit title Golf Clash, for $1.4 billion in cash.

Playdemic marks the company’s third major acquisition in recent months, following Codemasters, acquired in an all-cash deal with an implied enterprise value of $1.2 billion, and Glu Mobile for $2.1 billion in enterprise value.

The acquisition of Playdemic is expected to yield considerable synergies for EA, including a more extensive mobile and sports-rich product portfolio, an increased gaming footprint within Europe, and enhanced live service capabilities.

Taking into account the above-mentioned benefits for the company, analysts at Wedbush raised their estimates for 2022 from $6,164 million to $6,264 million for net bookings and from $5.95 to $6.11 for EPS. For 2023 the brokerage expects net bookings of $7,900 million (vs. prior $7,700 million) and EPS of $7.45 (vs. prior $7.25).

The analysts at Wedbush increased their price target on the company’s shares to $200 from $194, reiterating their outperform rating.

Why Did Bitcoin Drop Below $43,000?

Published at 2021-09-20 13:18:00

By Davit Kirakosyan

Other News

Axalta Coating Systems Pulled 2021 Guidance

2021-09-21 18:52:00

Colgate-Palmolive Upgraded to Buy at Deutsche Bank

2021-09-20 13:00:00

Personalis Shares Dropped 8% Following VA MVP Update

2021-09-20 12:57:00