Mobile Games Developer Glu Mobile Attempts to Raise $30m

Mobile games developer Glu Mobile has announced an underwritten sale of 8.75m shares, as it attempts to broaden its portfolio (either through acquisition of investment) of businesses or technologies that complements its existing operations. The underwriters have a 30-day option to purchase almost an additional 1.3m shares in the eventuality of over-allotments.

$30m Windfall?

Glu expects to net around $27.8m after the deduction of underwriting and estimated offering expenses. The stock was priced at around $3.50 per share. The company is taking this course of action as it seeks to acquire or invest in companies, technologies, assets or products that complement Glu's existing business. This current sale comes on the heels of last year's common stock offering, which raised $15.2m - following the sale of 7,245,000 shares - and exceeded the expected $13.2m.

Branching Out

Glu offers products to multiple platforms including iOS, Android, Amazon Windows Phone and Google Chrome. The $15.2m enabled the acquisition of Diner Dash developer PlayFirst, encouraged an memorandum of understanding with Japanese studio COLOPL and has brought Kim Kardashian on-board to help launch a celebrity lifestyle game.

Glu is attempting to increase its share in the real-money gambling sector - having linked up with GTECH, an online gaming software and hardware provider. Glu has launched a number of slots games based around its most popular gaming titles.