Attached files
file | filename |
---|---|
8-K - FORM 8-K - GLU MOBILE INC | f59707e8vk.htm |
EX-2.02 - EX-2.02 - GLU MOBILE INC | f59707exv2w02.htm |
EX-2.01 - EX-2.01 - GLU MOBILE INC | f59707exv2w01.htm |
EX-99.02 - EX-99.02 - GLU MOBILE INC | f59707exv99w02.htm |
EX-99.03 - EX-99.03 - GLU MOBILE INC | f59707exv99w03.htm |
Exhibit 99.01
Glu Announces Two Strategic Acquisitions of Game Developers
| Completed acquisitions of Griptonite Games and Blammo Games | ||
| Significantly expands freemium game development capabilities and studio capacity |
SAN FRANCISCO, Calif. August 2, 2011 Glu Mobile Inc. (NASDAQ:GLUU), a leading global publisher
of social mobile games for smartphone and tablet devices, today announced that it has acquired two
leading game developers: Griptonite Games and Blammo Games.
Griptonite Games is a leading developer of high-quality titles for handheld platforms. Based in
Kirkland, WA, Griptonite employs approximately 200 people and has shipped dozens of titles on Xbox
360, Wii, DS, PSP, and iPhone platforms. Under the terms of the agreement, Glu has acquired
Griptonite Games which includes its studio teams in Washington state, and will acquire integrated
art and development support from Griptonites Hyderabad, India facility. Net cash on Griptonites
balance sheet will support the transitional forward investment to new freemium product launches
beginning in Q2 2012. The consideration for the Griptonite acquisition consists of Glu issuing a
total of 6,106,015 shares of common stock.
We are excited to be joining the Glu family of studios, and look forward to being a major
contributor to Glus social mobile gaming momentum stated J.C. Connors, Griptonite Studio Head.
Blammo Games recently joined Glus gPartners program to develop two titles the first of which
will be launching in early 2012. Based in Toronto, Canada, Blammo is run by Christopher Locke who
was one of the creators as well as producer of several freemium top ten grossing iOS titles
including Smurfs Village and Zombie Café. Under the terms of the agreement, Glu will issue the
Blammo shareholders 1,000,000 shares of common stock as initial consideration and will potentially
issue up to 3,312,937 additional shares of common stock if Blammo meets certain net revenue
milestones during the earnout periods that stretch though March 2015.
We have enjoyed working with Glu on our gPartners titles. We believe the highly complementary
expertise between Glus freemium action-adventure successes and Blammos leading freemium casual
track record makes for a compelling combination, stated Christopher Locke, CEO, Blammo Games.
We are very pleased to have completed these acquisitions, as they represent an important step in
scaling our business and executing our social mobile games strategy, stated Niccolo de Masi, Chief
Executive Officer of Glu. The integration of these acquisitions will approximately double our
studio capacity dedicated to freemium titles, as well as add proven casual, freemium DNA to our
team. We look forward to the exciting contributions that the Griptonite and Blammo teams will
collectively bring to our 2012 social mobile gaming pipeline.
In connection with these two acquisitions, the Compensation Committee of Glus Board of Directors
increased the number of shares reserved for issuance under Glus 2008 Equity Inducement Plan by
1,050,000 shares. Glu utilized these additional shares in order to grant stock options to 159 new
non-executive employees of Griptonite and Blammo to purchase a total of 1,033,000 shares of Glus
common stock. The stock options have a six-year term, vest on a four-year schedule (25% of the
underlying shares vest on the first anniversary of the employees hire date and 2.083% of the
underlying shares vest monthly thereafter), and have an exercise price equal to the closing price
of Glus common stock on the NASDAQ Global Market on August 2, 2011.
Glus Board of Directors adopted the 2008 Equity Inducement Plan to facilitate the granting of
stock options as an inducement to new employees to join Glu. In accordance with NASDAQ Marketplace
Rule 5635(c)(iv), these awards were made under a stock incentive plan that has not received
stockholder approval. NASDAQ rules require a public announcement of equity awards made under this
type of plan.
About Glu Mobile
Glu Mobile (NASDAQ:GLUU) is a leading global publisher of Social Mobile games for smartphone and
tablet devices. Glus unique technology platform enables its titles to be accessible to a broad
audience of consumers all over the world supporting iOS, Android, Palm, Windows Phone 7 devices
and beyond. Glu is focused on bringing the best in social, freemium, cross-platform mobile gaming
experiences to the mass market. Founded in 2001, Glu is headquartered in San Francisco and has
major offices in Brazil, China, Russia and the UK. Glu is focused on creating compelling original
IP and also partners with leading entertainment brands including Activision, Atari, Caesars and
Fox. Consumers can find high-quality, fresh entertainment created exclusively for their mobile
devices 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.
GLU, GLU MOBILE and the g character logo are trademarks of Glu Mobile Inc. Other trademarks used
in this press release are the properties of their respective owners.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements, including those regarding the anticipated
benefits to Glu of the acquisitions of Griptonite Games and Blammo Games and how they will
contribute to Glus social mobile gaming momentum, the belief that the highly complementary
expertise between Glus freemium action-adventure successes and Blammos leading freemium casual
track record will make for a compelling combination, Glus expectation that these acquisitions will
approximately double its studio capacity dedicated to freemium titles, as well as add proven
casual, freemium DNA to the Glu team and the expected contributions that the Griptonite and Blammo
teams will collectively bring to Glus 2012 social mobile gaming pipeline. These forward-looking
statements are subject to material risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Investors should consider important
risk factors, which include: the risk that Glu will be unable to
successfully integrate both acquired companies and its employees and achieve expected synergies,
the risk that Glu will have difficulty retaining key employees of the acquired companies; the risk
that growth of smartphones and advanced networks does not grow as significantly as we anticipate or
that we will be unable to capitalize on any such growth; the risk that we do not realize a
sufficient return on our investment with respect to our efforts to develop social, freemium games
for smartphones and advanced platforms, the risk that our development expenses for games for
smartphones are greater than we anticipate; the risk that our recently and newly launched games are
less popular than anticipated; the risk that our 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 social, freemium gaming, is smaller than anticipated; and other risks detailed under the
caption Risk Factors in our Form 10-Q filed with the Securities and Exchange Commission on May 5,
2011 and our other SEC filings. You can locate these reports through our website at
http://www.glu.com/investors. We are under no obligation, and expressly disclaim any
obligation, to update or alter our forward-looking statements whether as a result of new
information, future events or otherwise.
# # #
Contacts:
Media & Investor Relations:
Seth Potter
ICR
ir@glu.com
(646) 277-1230
Media & Investor Relations:
Seth Potter
ICR
ir@glu.com
(646) 277-1230