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EA Buys Warner Bros’ Mobile Games Studio Playdemic for $1.4 Billion in Cash

Playdemic is the maker of ”Golf Clash“

EA (Electronic Arts) has purchased Warner Bros.’ mobile games studio Playdemic, the makers of “Golf Clash,” for $1.4 billion in cash.

“Golf Clash,” which is available on iOS, Android and Facebook, allows players to compete with each other around the world in real time. The award-winning game has more than 80 million global downloads to date.

Electronic Arts is best-known for its sports games, like “Madden,” which exist under the EA Sports banner. Clearly, the company sees a bright future in gaming for mobile platforms.

“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, the president of Warner Bros. Games, said in a statement accompanying Wednesday’s news. “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.”

“Playdemic is a team of true innovators, and we’re thrilled to have them join the Electronic Arts family,” Andrew Wilson, the CEO of Electronic Arts, added. “In addition to the ongoing success of ‘Golf Clash,’ the talent, technology and expertise of Playdemic will be a powerful combination with our teams and IP at Electronic Arts. This is the next step building on our strategy to expand our sports portfolio and accelerate our growth in mobile to reach more players around the world with more great games and content.”

“We founded Playdemic with a focus on creating highly engaging and innovative game experiences. 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,” Playdemic CEO Paul Gouge said. “Joining EA, one of the most successful games companies in the world, is an important next step in our journey and we are excited to continue to develop both ‘Golf Clash’ and new titles as part of the EA family.”

The $1.4 billion purchase price is subject to adjustment, and the transaction to regulatory approval. Current WarnerMedia (and thus, Warner Bros.) parent company AT&T will get the cash from the sale. The remaining Warner Bros. Games portfolio will be part of the WarnerMedia-Discovery merger once that one closes.

WarnerMedia and Discovery are combining entertainment assets in a separate $43 billion deal. That one is still going through the customary processes ahead of closure.

The estimated combined value of the two companies is in the $130 billion neighborhood. Read more about the mega-deal here.