Glu Mobile Inc.'s shares soared Tuesday after the mobile games maker launched its first real-money gambling product.
THE SPARK: The San Francisco company said that it is offering the gambling product through Probability plc, a mobile entertainment gambling provider. The game features elements of Glu's popular Samurai vs. Zombies Defense game and is available in the UK through Probability's distribution network.
THE BIG PICTURE: Glu has entered a new and potentially very lucrative market with real-money gambling.
Glu and Probability entered into a strategic relationship for real-money gambling in 2012 and plan to offer additional Glu-branded mobile gambling games in the future. The relationship is structured so that Probability provides a comprehensive operational role, accepting all regulatory responsibilities.
SHARE ACTION: Glu's shares soared 13 percent to $2.74 by midday on the news after hitting as high as $3.08 earlier in the day. Its stock remains far from the top of its annual trading range though. Its shares have traded between $1.99 and $5.90 in the past 52 weeks.