Glu Mobile has agreed to acquire Beijing Zhangzhong MIG Information Technology Co. Ltd., a leading developer and publisher of mobile games for China. The acquisition accelerates the companyâ€™s presence in China and deepens Gluâ€™s relationship with China Mobile, the largest wireless carrier in China.
According to Chinaâ€™s Ministry of Information Industry, the Chinese mobile market has more than 500 million mobile subscriptions. With the acquisition of MIG, Glu will be positioned to more effectively publish its existing world-class branded and award-winning original titles in China and to continue to publish MIGâ€™s market leading portfolio of culturally relevant and popular local titles. Importantly, this acquisition makes Glu the first top-tier global mobile games publisher to acquire a developer and publisher of mobile games in China.
As part of the acquisition, Wang Bin, chief executive officer, MIG, will join Glu as General Manager focused on China and Glu will add MIGâ€™s approximately 80 employees to its worldwide team. These employees will continue to develop and publish mobile games that are relevant to a local, and potentially global, audience as well as work in conjunction with Gluâ€™s existing Beijing office to further penetrate the Chinese market.
Under the terms of the transaction, which the parties anticipate will close in approximately three weeks, MIGâ€™s shareholders will receive approximately $14.7 million in cash. Additional payments of up to $25 million in cash and stock are contingent upon the achievement by MIG of certain financial milestones during 2008, with a portion of the additional payments subject to continued employment of the principal officers of MIG.
Originally posted on December 3, 2007 @ 11:49 am