Glu Mobile Inc. (NASDAQ: GLUU) 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.”
The above reference is an excerpt from Street Insider.
Thanks to K4NE for this discovery.