Tencent has sold $56 million worth of Glu Mobile shares and reduced its stake in the US developer.
The Chinese publishing giant sold 7,259,728 shares for $7.75 per share. According to an SEC filing, this reduces the company’s stake to 14.46 per cent (21 million shares) of the total outstanding shares of common stock.
Tencent has invested significantly in Glu in the past, investing $126 million back in 2015. It further raised its stake in early 2016 to 21.5 per cent.
Sales up, shares down
Glu has had a tough couple of years, recently returning to profitability in Q1 after reporting a net income of $700k - up significantly from the $7.2m losses it accrued the year prior.
The company’s flagship titles include Design Home and Covet Fashion, which each brought in $42.2m and $16.8m in Q1 2019 respectively.
Despite rising sales and returning to profit, investors were underwhelmed by the latest financials, which led to a drop in share price from $11.22 on May 6th to $8.85 on May 13th. Tencent’s sale represents a lower value than that at $7.75.
On Thursday, June 6th, shares closed at $7.05, the lowest point this year to date but still up from 2018 levels.
Tencent is heading to Pocket Gamer Connects Hong Kong on July 17th to 18th. Head to the website for details on the conference.
