Tencent Enters The US Gaming Market With Stake In Glu Mobile

Posted: May 1 2015, 7:26am CDT | by , in Technology News


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Tencent enters the US gaming market with stake in Glu Mobile

Tencent invests $126 million against 14.6 percent stake in Glu

According to research firm Newzoo, Tencent was the leading gaming company worldwide last year, with more than $7.2 billion in revenue. The company has also had considerable success with games that run on its mobile messaging service WeChat, the South China Morning Post reported.

Tencent Holdings Ltd of China is planning to invest a heavy sum of $126 million in Glu Mobile. Against this, the social networking and online entertainment firm is going to get 14.6 percent stake in Glu which is a San Francisco-based publisher of mobile games. This decision to invest in Glu clearly shows Tencent’s interest to expand its operations and make itself a space in the US gaming market.

Glu Mobile is currently famous for its popular “Kim Kardashian: Hollywood” game and things seem to be going in the right direction for the company after they posted their first quarter results on Wednesday which were better than expected. The company has been able to sail through with its sales from the famous “Racing Rivals,” “Deer Hunter 2014” and “Contract Killer: Sniper.”

According to a Reuters report, Tencent is going to be paying $6 a share for its stake in Glu Mobile which showed an 11 percent premium as stocks came to close on Wednesday eve. Following Glu’s official announcement, its shares soared 24 percent in extended trading on Wednesday.

Glu CEO Niccolo De Masi reportedly said, “Tencent is arguably the biggest gaming company in the world. It’s a case of fewer, bigger better, and not a volumetric approach in either direction. … We do believe we can grow our China business considerably given how large that market is now.”

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<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.




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