Traders are pushing up the price of major mobile developer Glu Mobile and other gaming companies one day after Electronic Arts announced it would purchase casual developer Popcap games for $750 million
Share of Glu stock were up over 9 percent to $5.68 just after noon, down slightly from a peak of $5.87 per share earlier in the day, its highest trading price since mid-2008.
Other gaming companies also seem to be seeing an immediate boost: shares in mobile developer Gameloft were up just over 2 percent to $6.85 on the French Stock Exchange today, and NASDAQ shares for casual-focused game-maker Majesco were up 5.67 percent to $3.14
"The acquisition of PopCap Games within the sector is the primary driver," Roth Capital Partners analyst Adam Krejcik told Reuters
. "It further validates the interest and value in social and mobile gaming companies and the multiples companies are willing to pay for."
"This transaction only heightens speculation for peer companies of PopCap," he continued.
Glu posted a $3.2 million dollar loss
for the first quarter of 2011, an improvement from a $3.7 million loss the year before.