SAN FRANCISCO–Glu Mobile Inc. (NASDAQ: GLUU), a leading developer and publisher of
mobile games, today announced it has completed the divestiture of its
Moscow studio along with the sale of several titles developed by that
location. Glu will receive aggregate consideration of approximately $4.5
million, consisting of $3 million in cash and the assumption of
approximately $1.5 million in minimum guaranteed royalty payments.
Originally acquired in 2008, Glu’s Moscow studio has focused on the
development and live operations of shooter and action games including
the Contract Killer, Frontline Commando, and Blood & Glory franchises,
all of which will be transitioned to Glu’s Hyderabad, India studio. Glu
Moscow was also managing live operations for Deer Hunter 2017, which
will transition to Hyderabad, where Deer Hunter Classic currently is
operated. The parties have agreed to transition each of these titles to
Hyderabad by March 31, 2018.
The assets sold by Glu include the Last Day Alive mobile game
currently in beta, the Heroes of Destiny mobile game previously
published by Glu, the celebrity license agreement for a previously
disclosed unnamed male celebrity and the corresponding mobile game in
the prototype stage. Glu has also agreed to provide a non-exclusive
license to use certain tools and technology necessary for further
development of the purchased games.
“This transaction is consistent with our strategy to consolidate
development operations to our creative centers located in North America.
As we enter 2018, we are focused on driving increased creativity and
collaboration in Glu’s remaining studios,” said Nick Earl, Glu’s
President and Chief Executive Officer. “I would like to thank the
talented team in Moscow for their contributions to Glu’s success and I
am confident they will continue to thrive under new leadership.”
“Over the last 18 months we have expanded our North America and India
locations while eliminating studios in Beijing, Bellevue, Portland, Long
Beach, and Moscow. These initiatives have allowed us to focus on a
scaled creative center in San Francisco and a low cost, repeatable
location in Hyderabad,” said Eric R. Ludwig, Glu’s Chief Operating
Officer and Chief Financial Officer. “Our prior statements about our
lower operating expense profile in 2018 assumed this transaction would
be completed by the end of 2017.”
Cautions Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” related
to the business of Glu Mobile Inc., including statements that Glu
intends to transition certain games developed and/or operated by its
Moscow studio to its Hyderabad studio by March 31, 2018; that Glu is
focused on driving increased creativity and collaboration in its
remaining studios; and that Glu expects to achieve a lower expense
profile in 2018 compared with 2017. Such forward-looking statements
involve known and unknown risks and uncertainties, including, but not
limited to, the risk that we do not realize the expected benefits from
the divestiture of our Moscow studio; the risk that consumer demand for
smartphones, tablets and next-generation platforms does not grow as
significantly as we anticipate or that we will be unable to capitalize
on any such growth; and the risk that we do not realize a sufficient
return on our investment with respect to our efforts to develop
free-to-play games for smartphones, tablets and next-generation
platforms. Certain of these risks and uncertainties are or will be
described in greater detail in our public filings with the SEC. Glu is
not under obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result of
new information, future events or otherwise.
About Glu Mobile
Glu Mobile (NASDAQ: GLUU) is a leading developer and publisher of mobile
games. Glu is focused on creating compelling original IP games such as,
COOKING DASH, COVET FASHION, DEER HUNTER, DESIGN HOME, QUIZUP, and
RACING RIVALS, and branded IP games including, THE SWIFT LIFE, MLB TAP
SPORTS BASEBALL 2017 and KIM KARDASHIAN: HOLLYWOOD on the App Store,
Google Play and Amazon Appstore. Founded in 2001, Glu is headquartered
in San Francisco with U.S. offices in Burlingame and San Mateo and
international locations in Canada and India. Consumers can find
high-quality entertainment wherever they see the ‘g’ character logo or
at www.glu.com.
For live updates, please follow Glu via Twitter at www.twitter.com/glumobile
and on Instagram at www.instagram.com/glumobile,
or become a Glu fan at www.facebook.com/glumobile.
COOKING DASH, COVET FASHION, DEER HUNTER, QUIZUP, RACING RIVALS, TAP
SPORTS, GLU, GLU MOBILE, and the ‘g’ character logo are trademarks of
Glu Mobile Inc.
CGM Newswire is a subsidiary of CGMagazine. For more information, visit our page here.
CGMagazine is Canada’s premiere comics and gaming magazine. Subscribe today to get the best of CGM delivered right to your door! Never miss when a new issue goes live by subscribing to our newsletter! Signing up gives you exclusive entry into our contest pool. Sign up once, you’ll have a chance to win! Sign up today!
Check out some of our latest news, reviews, and features including Brendan Frye’s Google Pixelbook Review and our IT Blu-Ray Giveaway Want to see more videos? Subscribe to our YouTube channel and check out the First 15 – Marvel vs. Capcom: Infinite, Forza Motorsport 7, and Cuphead!
Don’t forget to tune in every Friday the Pixels & Ink Podcast to hear the latest news, previews, and in-depth game discussions!
Never miss when new CGM articles go out by following us on Twitter and Facebook!