Glu Announces Sale of Its Moscow Studio
January 05 2018 - 4:42PM
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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version on businesswire.com: http://www.businesswire.com/news/home/20180105005811/en/
Glu Mobile Inc.Media ContactClaudia
OropezaPR@glu.com(415) 800-6378orInvestor
RelationsEllipsisBob Jones / Taylor KrafchikIR@glu.com(646)
776-0886
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