Glu buys online services outfit GameSpy for $2.8 million to drive monetisation and lifetime value
Providing cross-platform multiplayer connectivity
The online multiplayer services provider for PC, console and mobile games was bought by IGN for $54.6 million in 2004.
Glu didn't detail the price of the deal, but other sources have revealed it's issued 600,000 new shares, valuing the deal at $2.8 million based on the current $4.63 share price.
Apparently, 90,000 shares will be held in an escrow account for 15 months.
In recent months, GameSpy has been increasingly focused on indie developers, with over 1,200 developers signed up to its Open program.
These includes Glu, which uses GameSpy's matchmaking service in the Android version of its game Gun Bros. It says it will add the service to more titles in 2012.
All together now
"Our acquisition of GameSpy brings Glu industry-recognised leadership in online, cross-platform technology infrastructure," said Niccolo de Masi, Glu's CEO.
"GameSpy's battle-tested team will enable Glu's product roadmap to include robust and highly scalable multiplayer and social functionality.
"We expect that the acquisition of GameSpy will be earnings neutral in the near term. However, GameSpy team and technology is expected to help us drive higher monetisation and lifetime value in Glu's titles from 2013 on."
Glu says there won't be any disruption for GameSpy's current customers and contracts as a result of the acquisition.
[source: Glu Mobile]