Please ensure Javascript is enabled for purposes of website accessibility

Instant Analysis: Glu Mobile to Develop Mobile Game for World Wrestling Entertainment

By Eric Volkman - Jun 22, 2017 at 6:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Glu Mobile will bring WWE's "Superstars" to your phone in 2018.

What happened

The opening bell has sounded, and Glu Mobile (GLUU) is about to step into a World Wrestling Entertainment (WWE 1.57%) ring.

The software developer announced that it struck a deal with the "sports entertainment" purveyor to create a wrestling game for mobile devices. Neither the terms nor the value of the arrangement was made public, although Glu Mobile did say it was a multi-year deal and that the game will be released worldwide next year.

The company added that the title will feature some of WWE's top "Superstars" (the term the wrestling company uses for its in-ring talent), both active and retired. Among others, Glu Mobile specifically mentioned The Undertaker, Roman Reigns, and Triple H, perhaps better known to investors as longtime WWE executive Paul Levesque. 

Two wrestlers engage in the ring at a WWE match, as a referee looks on.

Image source: WWE.

Does it matter?

The WWE deal is a spot of good news that comes at a time when Glu Mobile could use some. Although the company is doing better than its recent headline numbers would indicate, its stock is still teasing multi-year lows. Those fundamentals didn't help -- in its most recently reported quarter, Glu Mobile posted a per-share adjusted net loss that was more than double the average analyst estimate.

Without knowing the specifics of the WWE deal, we can't make an educated guess on how beneficial (or not) it'll be for Glu Mobile. What we can say is that it shows that the company is able to score a solid, high-profile client and secure the relationship for several years.

I'm not a fan of software companies, as their fortunes can be volatile. But for investors who have a more optimistic view of the segment, this new collaboration strengthens the bull argument for buying or holding Glu Mobile stock, which is relatively cheap on a historical basis.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Glu Mobile Stock Quote
Glu Mobile
World Wrestling Entertainment, Inc. Stock Quote
World Wrestling Entertainment, Inc.
$58.25 (1.57%) $0.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.