Glu Mobile Dumps More Bad News on Zynga
Leading mobile gaming developer Glu Mobile Inc. (NASDAQ:GLUU) has announced today its intentions to join the fast-growing international mobile gambling arena by partnering with Probability PLC (LON:PBTY), the U.K.’s only publicly-traded pure-play mobile gambling company.
Probability will use Glu’s well-known original IP to “create a suite of Glu-branded mobile slot games,” a working relationship that has both parties excited for the future. Glu shares jumped 4 percent following the announcement.
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“We believe that mobile gambling momentum is beginning to accelerate on a global basis, and with this deal, Glu becomes an early mover,” said Glu Mobile Chief Executive Niccolo de Masi. “We view real-money mobile gaming as an opportunity to extend the reach of our successful original IP to new demographics, as well as deepen engagement and rewards for our players.”
The new slot games for smartphones and tablet devices will initially be available to consumers in Probability’s U.K. and Italy markets. Successful Glu brands that could potentially re-emerge in the suite of gambling games include Contract Killer, Deer Hunter and Gun Bros.
One company that can’t be excited about the deal is Zynga (NASDAQ:ZNGA), which has expressed its desire to enter the mobile gambling business sometime in 2013, but has now been beaten to the punch by Glu. This becomes yet another piece of bad news in what has been a rough recent patch for Zynga.
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