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Glu Closes Acquisition Of Superscape; Increases 2008 Guidance

Glu Mobile (NSDQ: GLUU) has completed its acquisition of Superscape for about $35.7 million, and updated its guidance today, saying the addition of the company will positively affect its first-quarter and year-end financial results.

Glu said the acquisition may add about $800,000 to its revenue in the first quarter, supplemented by the sales of one-time downloads of its Hasbro classic games. In an earlier forecast, the company expected revenues of up to $18.4 million. For the year, Glu currently expects Superscape to add about $12 million in revenues, which represents 10 months of revenue, beginning March 7. Previously, Glu said 2008 guidance included revenues of up to $87 million and a net loss of 31 cents to 36 cents a share. Reuters reported that the acquisition will be neutral to non-GAAP earnings until the fourth quarter, at which time it will become accretive.

The acquisition has taken some time to close, and still Glu does not own 100 percent of the outstanding shares of Superscape, although it intends to eventually purchase all outstanding shares.

One Response to “Glu Closes Acquisition Of Superscape; Increases 2008 Guidance”

  1. Near 100m turnover and still no profit in sight… got to make you wonder if any mobile content business that has to license brands and pay out huge royalties will ever make it…