Time Warner Inc. is the latest media giant to join the stampede to the “third screen” with a $7.5 million investment in wireless game maker Glu Mobile.
The stake was part of a $27.5 million haul in Series D financing for Glu (formerly Sorrent Inc. and Macrospace Ltd.), which has gained significant traction in the gaming sector. Granite Global Ventures led the round.
The move marks the first step into both the video-game and wireless-content markets for Time Warner, which is expected to launch a subscription-based online gaming service for broadband Internet users in October. Andy Heller, who serves as president of distribution for Time Warner subsidiary Turner Broadcasting Inc., will join Glu’s board under terms of the deal.
The conglomerate said the buy-in will allow it to peer over the shoulder of an established wireless publisher and leverage Glu’s relationships with nearly 100 wireless operators around the world.
“We are excited about (Glu’s) prospects and are delighted to help support the global expansion of an established industry leader that has a proven ability to develop high-quality wireless games and establish strong distribution partnerships,” said Rachel Lam, vice president of Time Warner Investments.
The investment doesn’t give Glu special access to Time Warner-licensed content and won’t infringe on Glu’s deal with News Corp. subsidiaries Fox Sports or Twentieth Century Fox. The publisher offers more than a dozen titles from News Corp. properties including “Mr. and Mrs. Smith,” “Robots” and a series of Fox Sports games.
Glu Mobile said it will use the cash to fuel its global expansion. The publisher has raised $58 million since its founding in 2001.
