The impressive run of Glu Mobile, the video game maker behind the viral “Kim Kardashian: Hollywood” app, has hit the pause button in the past week. But according to the company’s CEO, the game could remain popular—and profitable—for “years, not months” to come.
After climbing more than 80 percent since the game’s release in June, shares of Glu Mobile have fallen around 25 percent in just the last 5 days. The drop comes despite a better-than-expected second quarter earnings report on July 30th, and the company’s $100 million acquisition of rival Cie Games.
On CNBC’s “Fast Money,” Glu Mobile CEO Niccolo de Masi said the Kardashian app has launched his company into a new realm.
“We are definitely in uncharted territory. This is the first game of its type that’s ever been top 5 grossing in the store,” he said Monday.
The “Kim Kardashian: Hollywood” game falls under the “free-to-play” category, meaning that users can download and play the game free of charge but can also spend big bucks to advance to higher levels.
According to de Masi, Kim Kardashian is personally involved in the game on a day-to-day basis.
“She and I probably exchange an email or two a day … she is involved in the look and feel of the game, the content updates,” he said. With nearly 17 million Instagram followers and more than 22 million Twitter followers, her brand certainly carries weight.
As for those who don’t fully believe that “Kim Kardashian: Hollywood” is enough to support the stock, de Masi said there’s more to look forward to down the pipeline. “It is an important title, but it’s not our only one.”
Glu Mobile, just as Sweden listed G5 Entertainment, is hugely benefitting from the continuous growth of the mobile gaming space. Revenues generated by the top 50 grossing games are steadily rising, as we have reported previously. We will return with an update on this development later on this week. Stay tuned!