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.
