ARCHIVES: This is legacy content from before Marketing Dive acquired Mobile Marketer in early 2017. Some information, such as publication dates, may not have migrated over. Check out the new Marketing Dive site for the latest marketing news.

Glu Mobile offers $36M for Superscape

Glu Mobile Inc. is on a mission to become the world's leading mobile games publisher. Its next conquest: Superscape Group plc.

The company has announced a tender offer to buy Superscape, a leading developer and publisher of mobile games. The deal will expand Glu's presence in the United States and bolster development and publishing capabilities.

"Superscape's marketshare will move Glu closer to the No. 1 mobile games publisher in the U.S. and put a greater distance between Glu and the No. 3 company, and Glu will inherit Superscape's strong technical heritage in development and publishing," said Jill Braff, senior vice president of global publishing for Glu Mobile, San Mateo, CA.

Founded in 1993, Superscape was ranked by Nielsen Mobile as one of the top 5 mobile games publishers in the U.S.

The Superscape offer comes less than two months after Glu said it had bought Beijing Zhangzhong MIG Information Technology Co. Ltd., the leading publisher of mobile games in China, for $39.7 million in cash and stock.

Ms. Braff claims the acquisition made Glu the first top-tier global mobile games publisher to acquire a developer and publisher of mobile games in China.

The MIG acquisition enabled the company to distribute its content via China Mobile, the region's largest operator. It also added MIG's 80 employees to Glu's worldwide team.

The acquisition of San Clemente, CA -- based Superscape will ally Glu with handset manufacturers and leading carriers such as Verizon Wireless and Alltel Wireless.

"Glu's platform, when applied to Superscape's games, will give access to these games to many more millions of consumers around the world than currently have access," Ms. Braff said.

"Also, the addition of Superscape's development and merchandising technology and programs will allow the combined company to deliver games to a broader audience," she said.

Glu is offering 20 cents in cash for each Superscape share, which values Superscape's share capital at approximately $36 million, or about $25 million when taking into account the $11 million of cash and equivalents held on Superscape's balance sheet as of Oct. 31, the company said.

Superscape's portfolio of games includes both original titles, such as Gum Blox, Capone Casino, Sudoku and Paintball, and branded titles including Alien versus Predator, Fox Motocross, Bowling, Dodgeball, Fight Club, Harlem Globetrotters and Independence Day.

Superscape shareholders have 21 days from the date that the tender offer document is mailed to them to accept Glu's proposal.

"We continue to see positive growth and opportunity for the mobile games industry," Ms. Braff said. "We believe that in 2008 the industry will see fewer publishers having access to work with the leading wireless carriers, which will lead to further industry consolidation."