Glu Mobile Completes Tencent Strategic Investment
04 June 2015 - 6:05AM
Business Wire
Tencent purchases 8.5 million shares of
common stock in second closing
Glu Mobile Inc. (NASDAQ:GLUU), a leading global developer and
publisher of free-to-play games for smartphone and tablet devices,
announced that it has closed the second tranche of its previously
announced strategic investment from Tencent Holdings Limited
(Tencent, SEHK: 00700).
Tencent agreed to purchase from Glu an aggregate of 21 million
shares of Glu’s common stock at a price of US$6.00 per share, with
Tencent purchasing the initial 12.5 million shares on April 29,
2015. Tencent committed to purchase the remaining 8.5 million
shares upon the expiration or termination of the waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act, which
occurred on May 26, 2015. Accordingly, Tencent today purchased 8.5
million shares of Glu common stock for aggregate proceeds of $51
million. Following today’s second closing, Glu has a pro forma cash
balance of approximately $190 million, based on Glu’s cash balance
as of March 31, 2015.
“We are excited to officially complete the strategic investment
from Tencent and look forward to working together with a fantastic
partner that believes in our strategy and shares our vision. Steven
Ma, SVP and Head of Tencent’s Interactive Entertainment Group, is a
terrific addition to our Board of Directors, and we look forward to
continuing to benefit from his expertise in gaming,” said Niccolo
de Masi, Chairman & CEO of Glu.
Forward-Looking Statements
This press release contains certain “forward-looking statements”
related to the business of Glu Mobile Inc., which can be identified
by the use of forward-looking terminology such as “believes,”
“expects,” “plans” or similar expressions, including statements
regarding that we look forward to working together with a fantastic
partner that believes in our strategy and shares our vision and
that we look forward to continuing to benefit from Mr. Ma’s
expertise in gaming. Such forward-looking statements involve known
and unknown risks and uncertainties, including, but not limited to,
the risk that Glu does not realize the anticipated strategic
benefits from its strategic relationship with Tencent; the risk
that consumer demand for smartphones, tablets and next-generation
platforms does not grow as significantly as Glu anticipates or that
Glu will be unable to capitalize on any such growth; the risk that
Glu does not realize a sufficient return on its investment with
respect to its efforts to develop free-to-play games for
smartphones, tablets and next-generation platforms; the risk that
Glu will not be able to maintain its good relationships with Apple
and Google; the risk that Glu’s newly released games will be of a
quality less than desired by reviewers and consumers; the risk that
the mobile games market, particularly with respect to free-to-play
gaming, is smaller than anticipated; the risk that Glu may lose a
key intellectual property license; and other risks detailed under
the caption “Risk Factors” in Glu’s Form 10-Q filed with the
Securities and Exchange Commission on May 11, 2015 and Glu’s other
SEC filings. You can locate these reports through Glu’s website at
http://www.glu.com/investors. We are under no obligation, and
expressly disclaim any obligation, to update or alter these
forward-looking statements whether as a result of new information,
future events or otherwise.
About Glu Mobile
Glu Mobile (NASDAQ:GLUU) is a leading global developer and
publisher of free-to-play games for smartphone and tablet devices.
Glu is focused on creating compelling original IP games such as
CONTRACT KILLER, DEER HUNTER, DINER DASH, DINO HUNTER: DEADLY
SHORES, ETERNITY WARRIORS, FRONTLINE COMMANDO, RACING RIVALS, and
TAP SPORTS BASEBALL, and branded IP games including KIM KARDASHIAN:
HOLLYWOOD, ROBOCOP: THE OFFICIAL GAME, and HERCULES: THE OFFICIAL
GAME, on the App Store, Google Play, Amazon Appstore, Facebook, Mac
App Store, and Windows Phone. Glu’s unique technology platform
enables its titles to be accessible to a broad audience of
consumers globally. Founded in 2001, Glu is headquartered in San
Francisco with major U.S. offices outside of Seattle and in Long
Beach, and international locations in Canada, China, India, Japan,
Korea, and Russia. 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 or become a Glu fan at
Facebook.com/glumobile.
CONTRACT KILLER, DEER HUNTER, DINER DASH, DINO HUNTER: DEADLY
SHORES, ETERNITY WARRIORS, FRONTLINE COMMANDO, RACING RIVALS, TAP
SPORTS BASEBALL, GLU, GLU MOBILE and the ‘g’ character logo are
trademarks of Glu Mobile Inc. or its subsidiaries.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150603006509/en/
Investor Relations Contact:ICR, Inc.Seth Potter,
646-277-1230ir@glu.com
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