Chillingo Acquired For $20 Million By EA [UPDATED]
Electronic Arts Inc. (NASDAQ:ERTS) has acquired Chillingo, the gaming company that developed Angry Birds. The acquisition was made for about $20 million in cash according to a source with Reuters. Angry Birds was one of the fastest selling games on the Apple App Store and they recently released the game for Android free of charge. By releasing the game for free on Android, they saw about 2 million downloads in 3 days. “By acquiring Chillingo, EA Mobile is increasing its market leadership on the Apple Platform as well as reaffirming its position as the world’s leading wireless entertainment publisher,” stated a spokesperson for EA.
Chillingo followed up Angry Birds with a game called Cut the Rope. Cut the Rope sold one million copies in only 10 days. However Chillingo does not own the intellectual property behind both Angry Birds or Cut the Rope. Angry Birds is owned by Rovio and Cut the Rope is owned by ZeptoLab. There will be further details about what will happen to these two franchises tomorrow.
Update: Rovio Mobile said that they have not sold out. Chillingo is just a publisher. The acquisition has no impact on Rovio whatsoever.
[Mashable]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry