Glu scoops up Chinese game publisher

Glu Mobile Inc. will step up its efforts in China with the acquisition of fellow mobile game publisher Beijing Zhangzhong MIG Information Technology Co. Ltd.
The San Mateo, Calif.-based company will pay $14.7 million in cash and as much as $25 million more in cash and stock, contingent on MIG’s financial performance next year. MIG CEO Wang Bin will join Glu as general manager and Glu will absorb MIG’s 80 employees.
The deal-which is expected to close within three weeks-not only gives Glu expanded access to an exploding wireless market, it strengthens the company’s relationship with China Mobile, which boasts the world’s largest mobile customer base.
“We expect a modest revenue contribution from this acquisition in 2008,” said GLU CFO Rocky Pimentel. “Going forward, we anticipate that China will be an important market both for mobile games and for Glu.”
Like many of its fellow publishers, Glu has suffered through a disappointing year in the mobile gaming space. Shares of Glu-which have lost more than 50% in less than four months- climbed 18 cents to $5.33 after the announcement.