Glu Mobile Makes CEO Move, Buys Fashion-game Company

By Jeremy C. OwensMarketsMarketWatch Pulse

Glu Mobile Inc. said Thursday that Chief Executive Niccolo de Masi would transition to executive chairman and pass the CEO job to Nick Earl, a former executive at Kabam and Electronic Arts Inc. who has served as president of Glu's studios for the past year. The mobile-game maker also announced a much wider-than-expected loss for the third quarter and the acquisition of a controlling interest in Crowdstar, which makes a popular mobile game called "Covet Fashion." Glu reported a loss of $43.7 million, or 33 cents a share, on sales of $51.4 million. Analysts polled by FactSet expected a loss of 9 cents a share on sales of $50.9 million. De Masi noted royalty-impairment charges of $29.8 million for underperforming games as a cause of the miss. Glu has struggled to follow up a big hit, a mobile game based on celebrity Kim Kardashian, and revenues declined 18.8% year over year. The stock added about 3% in late trading Thursday.

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