June 23, 2021
Electronic Arts, AT&T, and WarnerMedia June 23 announced the sale of Warner Bros. Games’ mobile-games centric developer Playdemic, Ltd., to EA for $1.4 billion in cash.
The transaction generates more cash for AT&T to pay down $160 billion in debt following the Time Warner acquisition, while enabling Warner Bros. Games to focus on in-house IP games.
Founded in 2010, Playdemic is known for its popular Golf Clash that allows players to compete with each other around the world in real time. Golf Clash is one of the leading mobile games in the U.S. and U.K. and has more than 80 million downloads globally to date. The game has been honored with numerous industry awards, including winner of the BAFTA Games Mobile Game of the Year (2018), Mobile Games Awards Game of the Year (2018), PocketGamer.biz Game of the Year (2017) and The Independent Game Developers’ Association (TIGA) Awards Game of the Year (2017).
“We have enjoyed working with the talented team at Playdemic as they have grown Golf Clash beyond all expectations into a hit mobile game with tremendous longevity,” David Haddad, president of Warner Bros. Games, said in a statement. “While we have great respect for the Playdemic team, our decision to divest is a part of our overall strategy to build games based on Warner Bros. storied franchises.”
The acquisition of Playdemic is part of EA’s mobile growth strategy focused on delivering exciting new games for its network of nearly half a billion players around the world. Playdemic’s portfolio and creative talent will be a significant addition to EA’s mobile growth engine. The acquisition will add to EA’s mobile portfolio of more than 15 live services across fast-growing genres, including lifestyle, casual, sports, and mid-core games.
“We founded Playdemic with a focus on creating highly engaging and innovative game experiences,” Paul Gouge, CEO of Playdemic, said in a statement. “Our success with Golf Clash has proven our approach and demonstrated the ability of our incredibly talented teams to develop and operate best in class mobile games.”
The acquisition price is subject to customary adjustments, and will be paid in cash at closing and retained by AT&T. The transaction is subject to customary regulatory approvals. The remaining Warner Bros. Games portfolio is included in the recently announced WarnerMedia-Discovery transaction and will become part of the combined media and entertainment company after the expected close of that transaction.