Glu restructures MIG acquisition: Mobile content vendor hopes to right the ship

Shares of Glu Mobile Inc. edged upward after the game maker restructured earnout and bonus obligations for last year’s acquisition of the Chinese publisher MIG.
Glu converted the entire $25 million of payments to cash, deferring $11 million of the payments to 2010. The San Mateo, Calif.-based publisher also said it has entered a new credit facility with Silicon Valley Bank that extends Glu’s $8 million line of credit through December 2010.
An established player in the turbulent mobile-gaming space, Glu is hoping to right the ship after suffering through a brutal 2008. The firm posted a whopping $56.9 million third-quarter loss in November – citing a $46.6 million write-down of two of its three reporting units – and recently committed to slashing an unspecified number of jobsas part of an effort to trim operating expenses by $13 million.
“The restructuring of the MIG payments and line of credit extension substantially improves Glu’s liquidity,” CEO Greg Ballard said in a prepared statement. “With these developments, we can now focus on increasing shareholder value by improving our existing carrier business and building our presence on new, high-end handsets and platforms that are gaining traction in the mobile market.”
The moves sent Glu stock up 6 cents, or 17%, to 41 cents per share. Glu shares recently sank as low as 22 cents each, down drastically from a 52-week high of $5.77.