Glu Announces Two Strategic Acquisitions of Game Developers

Glu Mobile Inc. GLUU today announced that it has acquired two game developers: Griptonite Games and Blammo Games. Under the terms of the agreement, Glu has acquired Griptonite Games which includes its studio teams in Washington state, and will acquire integrated art and development support from Griptonite's Hyderabad, India facility. Net cash on Griptonite's balance sheet will support the transitional forward investment to new freemium product launches beginning in Q2 2012. The consideration for the Griptonite acquisition consists of Glu issuing a total of 6,106,015 shares of common stock. Blammo Games recently joined Glu's gPartners program to develop two titles – the first of which will be launching in early 2012. Based in Toronto, Canada, Blammo is run by Christopher Locke who was one of the creators as well as producer of several freemium top ten grossing iOS titles including Smurf's Village and Zombie Café. Under the terms of the agreement, Glu will issue the Blammo shareholders 1,000,000 shares of common stock as initial consideration and will potentially issue up to 3,312,937 additional shares of common stock if Blammo meets certain net revenue milestones during the earnout periods that stretch though March 2015.