News

Glu Mobile sells Moscow studio for $2.8 million

Date Type Companies involved Size
January 8th, 2018 acquisition Glu Mobile $2.8m
Glu Mobile sells Moscow studio for $2.8 million

Glu Mobile has sold its Moscow-based games development studio to US games company Saber Interactive for $2.8 million.

The office housed around 120 employees and they are all expected to keep their jobs under the new owner following the deal.

Shifting development

Some of Glu’s existing IP at the studio such as Deer Hunter 2017, Contract Killer Sniper and Frontline Commando DDay will be moved to Glu’s office in Hyderabad, India.

Saber has agreed to have 25 employees at the Moscow office assist in the transition of operations at no cost to Glu.

Under the terms of the deal Glu will receive $2.8 million plus the amount of cash that remained in the Russian arm’s bank accounts as of the closing date of the deal. $1.3 million will be payable prior to January 10th, while the remaining $1.5 million is due upon completion of the transition.

Staff will also be eligible for bonus payments from Saber up to $500,000.

Saber has agreed not to "commercially exploit any mobile games that primarily involve hunting deer and/or other animals, subject to limited exceptions" for the next five years.

Game sales

On top of this, Glu has also agreed to sell four mobile games and the related rights to four games developed by its Moscow studio to MGL My.com for $200,000. These include Last Day Alive, Heroes of Destiny, Furiosa and a new celebrity game.

Glu expects to record a non-cash loss of $6.4 million to $6.6 million in Q4 2017 due to a $10 million charge related to the assignment of one of the celebrity game contracts, a $1.2 million charge related to the write-off and goodwill associated with the Moscow studio and a $0.5 million charge related to the write-off of net assets.


Senior Editor

Craig Chapple is Senior Editor of PocketGamer.biz. He was previously Deputy Editor at Develop and Online Editor at Nintendo of Europe.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies
Important information

This site uses cookies to store information on your computer. By continuing to use our site, you consent to Steel Media's privacy policy.

Steel Media websites use two types of cookie: (1) those that enable the site to function and perform as required; and (2) analytical cookies which anonymously track visitors only while using the site. If you are not happy with this use of these cookies please review our Privacy Policy to learn how they can be disabled. By disabling cookies some features of the site will not work.