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Tencent Buys 14.6% Stake in Glu Mobile, The Kardashian Effect?
Tencent, one of China’s leading internet companies, has agreed to pay a massive amount for 14.6% share in Glu Mobile. How massive you ask? The company is paying $126 million to the creators of Kim Kardashian: Hollywood.
It wouldn’t be wrong to call it the Kardashian effect!
As a result of this deal, Glu’s shares went-up 23% in after hour trading. Chairman and chief executive officer Niccolo de Masi spoke about the deal and said it would help Glu expand its business in China.
Tencent is taking over 21 million shares of Glu at $6 each.
Tencent is China’s biggest gaming company and according to some research done by NewZoo, it’s also the top publicly traded company in the world in terms of game revenue. The company went past Sony and Microsoft when it made $7.2 billion during 2014.
Tencent has got its fingers dipped in some of the biggest games and gaming companies in the US. It invested in Riot Games, developer of League of Legends along with companies like Activision Blizzard and Gears of War creator Epic Games.
Glu on the other hand is making games on the lives of Britney Spears, Kendall Jenner, Katy Perry and more. Its Kim Kardashian: Hollywood was a big hit, and the developer expects the same from its upcoming celebrity games.
Now with this investment from Tencent, we can expect bigger and better mobile projects from the developer.