EA to purchase WarnerMedia's Playdemic gaming studio for $1.4 billion

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Electronic Arts Inc. EA, -1.14% plans to acquire mobile-gaming studio Playdemic, which is currently owned by AT&T Inc.'s T, +0.03% Warner Media, for $1.4 billion in cash. Playdemic, which developed the game "Golf Clash," will factor into EA's mobile-games portfolio, as the gaming powerhouse looks to bolster its sports content. "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 [intellectual property] at Electronic Arts," EA Chif Executive Andrew Wilson said in a Wednesday release announcing the deal. "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." The remainder of WarnerMedia's gaming portfolio is included in a deal announced last month that will combine WarnerMedia with Discovery Inc. DISCA, +0.78%.

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