EA Mobile buys Chillingo: Reuters claims $20 million cash sale

As has been rumoured all day, it's now been confirmed that EA Mobile has bought UK mobile publisher Chillingo.

"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," EA Interactive's PR director Holly Rockwood said in a statement to Reuters.

No surprise there. What is surprising is the price - rumoured by Reuters to be 'only' be $20 million.

This follows on from sources suggesting a valuation from $80 - 200 million. Even PocketGamer.biz postulated circa $100 million.

EA hasn't confirmed the price yet so there's still some speculation involved.

But $20 million in cash isn't necessarily a low deal for a company that publishes a lot of iPhone games, but doesn't develop any, and only has limited rights in terms of publishing those titles on other platforms, whether it be Android, Windows Phone 7 or Java.

For example, Rovio, which publishes Angry Birds though Chillingo on iPhone, has self published the Android version and a new Halloween game for iPhone and iPad.

Anyhow, with such purchases, the devil is always in the details, with the mix of cash and shares, and bonuses based on future performance typically grouped together to create a headline figure - something we've most recently seen in the DeNA-ngmoco deal.

That said, what is clear is that the mobile gaming space is currently hot, and there are plenty more deals in the offering.

Check out our Opinion: The ten next best acquisitions in mobile gaming (technically now nine) - for more pointers.

[source: Reuters]