NEW YORK – A $126 million investment from a Chinese gaming company sent shares of Glu Mobile soaring almost 30 percent before the opening bell Thursday.
Tencent Holdings Ltd., based in Shenzhen, a booming city that borders Hong Kong, acquired 21 million shares at $6 each. With a 14.6 percent stake, it is now Glu Mobile's largest shareholder.
It's been a busy week for the San Francisco gamemaker.
After topping Wall Street expectations for the first quarter Wednesday, Glu said it had added to its stable of celebrity-focused games by cutting a five-year deal with Britney Spears. The company already has deals with Kim Kardashian and Katy Perry.
With Tencent's backing, it appears that Glu is going to broaden its presence in China, said Benchmark analyst Mike Hickey.
"The effective localization and publishing of a celebrity related mobile game for the China market could provide a significant performance boost," Hickey said.
Shares of Glu Mobile Inc. jumped $1.54 to $6.94 in premarket trading.