SAN FRANCISCO--(BUSINESS WIRE)--
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.
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