The Apple Game Products division is set to receive a $2 billion infusion from Alphabet’s Google, according to a source familiar with the deal.
The announcement was made during a speech at the company’s annual shareholders meeting in San Francisco on Monday, when Apple Chief Financial Officer Tim Cook spoke about how the company is continuing to invest in the game business.
Cook said that Apple’s game businesses are making record-breaking revenue growth.
The company has been focused on the game industry for years, Cook said, but that now “we’re going to do more to create a gaming ecosystem in the world that can help drive even bigger revenue growth.”
Cook said Apple’s current focus on the video game industry has created a large challenge for the company, which is working to grow the business while maintaining its “innovation leadership” and keeping it relevant.
He also said Apple has seen a surge in the number of companies that are launching mobile games in the past year.
The acquisition will bring Apple to a total of about $3.7 billion in cash and $1.5 billion in market value, the source said.
The deal is expected to close by March 2021.
Cook told investors on Monday that the company has invested $250 million into the company and is working on an additional $250-million investment, which will help grow the game division’s business.