Glu Mobile Completes Tencent Strategic Investment

Tencent purchases 8.5 million shares of common stock in second closing

SAN FRANCISCO--(BUSINESS WIRE)-- Glu Mobile Inc. (NASDAQ: GLUU), a leading global developer and publisher of free-to-play games for smartphone and tablet devices, announced that it has closed the second tranche of its previously announced strategic investment from Tencent Holdings Limited (Tencent, SEHK: 00700).

Tencent agreed to purchase from Glu an aggregate of 21 million shares of Glu’s common stock at a price of US$6.00 per share, with Tencent purchasing the initial 12.5 million shares on April 29, 2015. Tencent committed to purchase the remaining 8.5 million shares upon the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which occurred on May 26, 2015. Accordingly, Tencent today purchased 8.5 million shares of Glu common stock for aggregate proceeds of $51 million. Following today’s second closing, Glu has a pro forma cash balance of approximately $190 million, based on Glu’s cash balance as of March 31, 2015.

“We are excited to officially complete the strategic investment from Tencent and look forward to working together with a fantastic partner that believes in our strategy and shares our vision. Steven Ma, SVP and Head of Tencent’s Interactive Entertainment Group, is a terrific addition to our Board of Directors, and we look forward to continuing to benefit from his expertise in gaming,” said Niccolo de Masi, Chairman & CEO of Glu.

Forward-Looking Statements

This press release contains certain “forward-looking statements” related to the business of Glu Mobile Inc., which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “plans” or similar expressions, including statements regarding that we look forward to working together with a fantastic partner that believes in our strategy and shares our vision and that we look forward to continuing to benefit from Mr. Ma’s expertise in gaming. Such forward-looking statements involve known and unknown risks and uncertainties, including, but not limited to, the risk that Glu does not realize the anticipated strategic benefits from its strategic relationship with Tencent; the risk that consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as Glu anticipates or that Glu will be unable to capitalize on any such growth; the risk that Glu does not realize a sufficient return on its investment with respect to its efforts to develop free-to-play games for smartphones, tablets and next-generation platforms; the risk that Glu will not be able to maintain its good relationships with Apple and Google; the risk that Glu’s newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to free-to-play gaming, is smaller than anticipated; the risk that Glu may lose a key intellectual property license; and other risks detailed under the caption “Risk Factors” in Glu’s Form 10-Q filed with the Securities and Exchange Commission on May 11, 2015 and Glu’s other SEC filings. You can locate these reports through Glu’s website at http://www.glu.com/investors. We are under no obligation, and expressly disclaim any obligation, to update or alter these forward-looking statements whether as a result of new information, future events or otherwise.

About Glu Mobile

Glu Mobile (NASDAQ: GLUU) is a leading global developer and publisher of free-to-play games for smartphone and tablet devices. Glu is focused on creating compelling original IP games such as CONTRACT KILLER, DEER HUNTER, DINER DASH, DINO HUNTER: DEADLY SHORES, ETERNITY WARRIORS, FRONTLINE COMMANDO, RACING RIVALS, and TAP SPORTS BASEBALL, and branded IP games including KIM KARDASHIAN: HOLLYWOOD, ROBOCOP: THE OFFICIAL GAME, and HERCULES: THE OFFICIAL GAME, on the App Store, Google Play, Amazon Appstore, Facebook, Mac App Store, and Windows Phone. Glu’s unique technology platform enables its titles to be accessible to a broad audience of consumers globally. Founded in 2001, Glu is headquartered in San Francisco with major U.S. offices outside of Seattle and in Long Beach, and international locations in Canada, China, India, Japan, Korea, and Russia. Consumers can find high-quality entertainment wherever they see the ‘g’ character logo or at www.glu.com. For live updates, please follow Glu via Twitter at www.twitter.com/glumobile or become a Glu fan at Facebook.com/glumobile.

CONTRACT KILLER, DEER HUNTER, DINER DASH, DINO HUNTER: DEADLY SHORES, ETERNITY WARRIORS, FRONTLINE COMMANDO, RACING RIVALS, TAP SPORTS BASEBALL, GLU, GLU MOBILE and the ‘g’ character logo are trademarks of Glu Mobile Inc. or its subsidiaries.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150603006509/en/

Investor Relations Contact:
ICR, Inc.
Seth Potter, 646-277-1230
[email protected]

Source: Glu Mobile Inc.

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