News
Glu eases financial pressure
Tim Green Dec 30 2008, 2:05pm
Glu Mobile has moved to stabilise its finances with a new credit facility.
The under-fire mobile games publisher confirmed that the Silicon Valley Bank has extended its $8m credit facility, which was originally due to expire in February 2009, through to December 2010. Glu has also restructured the earnout and bonus obligations for its MIG acquisition by converting the $25 million of payments to cash and deferring $11 million of the payments to 2010.
It believes that these actions, along with other cost cutting measures, will 'significantly improve the company’s liquidity position, while eliminating a significant source of potential dilution to stockholders.'
Greg Ballard, CEO of Glu, said: "With these developments, we can now focus on increasing shareholder value by improving our existing carrier business and building our presence on new high end handsets and platforms that are gaining traction in the mobile market."
