Firemint’s Acquisition Price Was Less Than $25 Million, EA Says
Australian developer Firemint was acquired for less than $25 million by Electronic Arts, according to the company’s earnings call today. The news came out yesterday, but the amount wasn’t disclosed. EA chief executive John Riccitiello shared a few more details today.
EA said the acquisition price was around four times Firemint’s earnings before interest, taxes, depreciation and amortization. Firemint had sold 4.5 million copies of Flight Control and 2 million copies of Real Racing.
“We just picked up a company we feel great about with Firemint and we did so at a vastly lower price than has been reported publicly,” Riccitiello said. “They’re extremely talented developers with a couple of blockbusters.”
EA said it will continue to look at smaller scale acquisitions that are purely digital. The company is trying to bolster its mobile strategy as revenues on iOS pick up: EA’s mobile revenues rose by 27 percent year-over-year to $70 million in the last quarter. iOS revenues doubled. The company is also planning more “digital service” games on the Facebook platform.
“One of the things we enjoy about acquisitions is the speculation that we spent five times more than we did, which is what happened with Chillingo,” he added. Game publisher Chillingo, which has distributed Cut The Rope and Rovio’s Angry Birds, was reportedly acquired for less than $20 million, according to Reuters.