Glu Mobile acquires 'Deer Hunter' game franchise from Atari
Glu Mobile has acquired the Deer Hunter game trademark and license from Atari. Financial terms were not disclosed.
Deer Hunter lets gamers stalk wildlife through forests and meadows, collecting trophies and weapons.
Originally released for the Windows platform in late 1997, Deer Hunter enables gamers to stalk wildlife through forests and meadows, collecting trophies and weapons. Glu first ported the title to mobile devices in 2004; the Deer Hunter brand has now generated more than $21 million in revenue for the company.
Glu will unveil the new Deer Hunter: Reloaded later this month. The firm adds that in addition to smartphones and tablets, it sees opportunities to expand the franchise to Apple's (NASDAQ:AAPL) Mac App Store, Google (NASDAQ:GOOG) Chrome and connected TVs.
In related news, Glu reiterated it has no current plans to raise additional capital in 2012 through an offering of any kind. On Wednesday, Glu filed a prospectus supplement with the Securities and Exchange Commission related to the sale of a warrant to purchase 50,000 shares of Glu common stock issued in a 2010 private placement transaction. According to Glu, the filing of the prospectus supplement is wholly unrelated to the Deer Hunter deal.
"As I stated during our last earnings conference call, we anticipate reaching profitability without needing to access the equity capital markets or incur any debt," said Glu President and CEO Niccolo de Masi. "As part of our announcements related to the Deer Hunter transaction earlier today we reiterated our expectations of reaching profitability with a net cash balance in the double digit millions. We have no need nor current intention to raise capital."
Analysts and investors believe that Glu is a likely target for acquisition after social gaming giant Zynga scooped up Draw Something maker OMGPOP for $180 million. "They happen to be in the right space at the right time," Daniel Niles, senior portfolio manager at AlphaOne Capital Partners, told Bloomberg late last month. "If you're looking at this and saying 'I know I need to get into the freemium business, and I'd like exposure to the fastest growing pieces of that--which are the guys that produce stuff for cell phones and tablets,' this is a logical candidate that's also not that expensive."
Shares of Glu have slumped 61 percent since the company went public in 2007, but it is on pace to post its first profit in 2014, buoyed by a shift to the freemium gaming model, which offers consumers free downloads and drives revenues via in-app sales of virtual goods. Bloomberg adds that Glu Mobile is trading at 2.3 times 2013 sales, cheaper than the average of its competitors.
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