Glu Mobile sold its 21 million shares to Tencent, which is a Chinese internet giant, for a total of $126 million. 21 million shares is equivalent to 14.6 percent of all the shares of Glu Mobile. The deal can be interpreted to be $6 per share. This rate is definitely a lot higher compared to the price range where Glu Mobile traded for the past year.
Steven Ma, who is the game division SVP of Tencent, will join the board of director of Glu Mobile as part of their deal and negotiation.
According to Niccolo De Masi, who is the CE of Glu Mobile, we cannot argue that Tencent is the biggest among all gaming companies in the whole world. Aside from the mobile and online gaming clouts of Glu Mobile in Asia, the company also ventures on almost half of Epic Games.
As of the moment, 71 percent of the revenue of Glu Mobile is coming from the North America. Only 14 percent of its total revenue is coming from eastern Asia. This means that the market in Asia of Glu Mobile is not yet that solid.
De Masi sees the partnership of Glu Mobile and Tencent as beneficial for both sides. With this kind of partnership, Tencent’s can now travel west while Glu Mobile’s games can travel east. Therefore, the decision of the two to work together is just right!