Glu Mobile Inc. (NASDAQ:GLUU) announced that Niccolo de Masi will transition from his roles as Chairman and Chief Executive Officer to become the Company’s Executive Chairman. Nick Earl, President of Global Studios, has been named Chief Executive Officer.
“On behalf of the full Board, I would like to extend my sincere gratitude to Niccolo for his exceptional tenure as our CEO,” said Benjamin T. Smith IV, Lead Independent Director of Glu’s Board of Directors. “Under his stewardship, Glu built a best-in-class game development and publishing team, achieved remarkable growth and became a leader in the free-to-play mobile industry. We look forward to Niccolo’s continued leadership of our Board and his strategic contributions to Glu.
“We’re also thrilled to have Nick appointed as Glu’s next leader. Nick and the executive team have worked together for nearly a year during his role as President of Global Studios, during which time it became clear that Nick is the ideal candidate to succeed Niccolo. We’re confident Nick will help Glu execute on existing and new initiatives and shape them to drive long-term stockholder value.”
As Executive Chairman, a position newly-created by the Board, Niccolo will shift his focus towards enhancing the Company’s long-term growth plan, including strategic acquisition planning and maximizing celebrity relationships, while also facilitating Glu’s leadership transition to drive the Company forward in a changing mobile games market. In addition to his role as Executive Chairman, Niccolo has assumed a new leadership role working with Andy Rubin, the creator of the Android operating system and ecosystem. His work with Mr. Rubin will be in the hardware sector and thus non-competitive to his involvement with Glu.
“It has been a privilege to lead Glu Mobile as CEO, and I am proud of our incredibly talented team and what we have accomplished together,” said Niccolo de Masi. “During the past six and a half years, we have experienced tremendous fundamental growth, successfully negotiating the platform transition from feature-phone paid downloads to smartphone free-to-play. From 2010 to 2015, we grew revenues at a CAGR of nearly 30%, and we significantly strengthened our balance sheet.
“Looking ahead, the Board and I believe that the time is now right for a new leader with a world-class, product-centric background who can build on Glu’s considerable success to-date. As an experienced veteran of Electronic Arts and mobile gaming, who has been with Glu for nearly a year and knows our business well, Nick is that leader. As I step up into my new strategic role, I look forward to continuing to work with Nick to position the Company for long-term success.” (Original Source)
Shares of Glu Mobile closed today at $1.94, up $0.06 or 3.19%. GLUU has a 1-year high of $4.00 and a 1-year low of $1.84. The stock’s 50-day moving average is $2.17 and its 200-day moving average is $2.35.
On the ratings front, GLUU stock has been the subject of a number of recent research reports. In a report issued on November 1, Canaccord analyst Michael Graham reiterated a Hold rating on GLUU, with a price target of $3.00, which represents a potential upside of 60% from where the stock is currently trading. Separately, on October 28, Roth Capital’s Darren Aftahi reiterated a Hold rating on the stock and has a price target of $2.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Graham and Darren Aftahi have a yearly average return of 7.3% and a loss of 7.6% respectively. Graham has a success rate of 49% and is ranked #241 out of 4165 analysts, while Aftahi has a success rate of 40% and is ranked #3859.
Glu Mobile, Inc. designs, markets and sells mobile games. It develops, publishes and markets a portfolio of games designed to appeal to a broad cross section of the users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others.