Glu Mobile looks to bulk up with Superscape buy-out
Loss-making UK outfit rated at $25 million
The competition among the big three mobile game publishers is hotting up with the news that Glu Mobile is in talks to buy UK outfit Superscape.
Superscape's board has accepted the offer but it has to be ratified by the company's shareholders.
The deal which values Superscape's ongoing operations at $25 million (technically $36 million minus Superscape's $11 million of cash and equivalents), sees Glu offering a deal worth 29 percent over the current price of Superscape's shares.
This is despite Superscape continuing to be a loss-making company - £2.8 million on sales of £7.2 million for the six months to 31 July 2007.
Yet starting out as UK developer of 3D games using its own Swerve technology, in recent years Superscape has emerged as a strong publisher in the US market, thanks to its focus on BREW games and a partnership with Verizon Wireless which sees it supply the operator with branded games such as Verizon Chess 2D, Verizon Sudoku 2D and Verizon Board Games 2D.
The company also owns intellectual properties including Capone Casino, Ultimate Checkers and Gang Racer 3D. Superscape has a development office in Moscow, an office in Hampshire and is headquartered in California.
"This Offer represents an important step in Glu's strategy to become the number one mobile games publisher in the world," said Greg Ballard, chief executive officer and president, Glu. "Superscape's strong market position in the United States, heritage in 3D technology, and unique position as a leading white label publisher are a perfect complement to Glu's world-class global presence."Under the rules of the UK stock market, Superscape's shareholders, which include chip designer ARM which holds eight per cent of the shares, have 21 days to accept the offer.
