Mergers and Acquistions News
Categories: Media & Information Services, Software
October 21st 2010, 17:12PM
Video games developer Electronic Arts (EA) has confirmed it is planning to acquire the maker of the phenomenally successful Angry Birds iPhone app, it has emerged.
A source close to the situation told Reuters that EA will pay under $20 million (£12.6 million) in cash to buy Chillingo.
The acquisition will enable the gaming giant to expand into the flourishing mobile games sector.
However, a spokesperson for the firm, while confirming the deal, said EA will not acquire the intellectual property (IP) rights to Angry Birds which will remain with its developer, Finnish firm Rovio.
The news provider reported that this detail piqued the attention of analysts.
"I'm kind of wondering what they bought," Todd Mitchell, a Kaufman Bros analyst, told the news provider.
"But in light of EA not getting the IP, they're buying the development platform to put their own IP on it in hopes of driving social networking and customers back to their own properties," he added.
In Angry Birds, the aim is for users to destroy pigs that are holding lucrative eggs by controlling a flock of birds using a slingshot.
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