Chinese social network Tencent has agreed to buy 14.6 per cent of mobile game developer Glu Mobile for $126m.
Glu is best known for its Kim Kardashian: Hollywood, where you get to “date and dump celebs at the best parties and hottest clubs! Flirt and become the next huge celebrity power-couple!”.
Yesterday the company announced a deal with Britney Spears. “I am thrilled to add Grammy Award-winning legend Britney Spears to Glu’s growing list of partners as we continue to expand our celebrity gaming platform,” said Glu chairman and CEO, Niccolo de Masi.
“We anticipate the title resonating tremendously with Ms. Spears’ nearly 90 million multi-generational social followers around the world.”
A war for the pockets of Chinese consumers is in full swing, with Alibaba, Xaiomi, LeTV, Tencent and others all lining up their content plays. Glu is a long-established company in the mobile games industry and it has seen fewer of the senior management changes which are common in the sector.
The Tencent purchase at $6 a share represents a 11 per cent premium on Wedndesday’s closing price, but has sent Glu shares soaring with a price more than twice the Tencent premium.
One industry insider told El Reg that he thought it was an excellent match, as Glu was more of a games portfolio company than a hits one and that the extended library would work well for Tencent. With the mobile games industry becoming more Candy Crush hits-based, it might be a safe haven for Glu. ®