Glu Mobile rallies more than 10% in today’s trading on the news of EA’s acquisition of PopCap. That clearly has the market on the hunt for other companies that make games for mobile phones, tablets and the Web. And that seems to be giving a big lift this morning to shares of Glu Mobile, a San Francisco-based company that provides games for the iOS, Android, Palm and Windows Phone 7 platforms.
Glu posted 2010 revenue of $64.3 million, down from $79.3 million in 2009, and $89.8 million in 2008, which is not a good trend, and it has been losing money. Wall Street sees the business stabilizing, forecasting revenue of $63 million this year and $69.9 million next year. PopCap by contrast had revenue of $100 million last year, and expects an increase of at least 40% this year, so Glu’s business is clearly not nearly as healthy. G5 Entertainment (http://www.g5e.com/), which is listed in Sweden, is growing its business by more than 100% according to recent management guidance for FY 2011 , profitability is high and there is no debt!