John Gilliam

Has EA's Management Been Sniffing (around at) GLUU?

I almost quit reading your post after you said Glu has no material IP. Of course, its obvious to all that they haven't reached profitability - what you are missing is that the new App stores will cause the distribution costs to fall substantially and the developing mass market for the iPhone and Android based phones will allow Gluu to develop games based on all of those expensive licenses for three or four instead of 10 - 15. This will have a huge impact on their cost structure and bottom line, though it will probably be late 2009 before its seen.

Regarding your comments about the crew that brought them public calling Glu a joke - did you mean Lehman Brothers or the Tarp funded retail bank Goldman Bankshares (formerly known as Goldman Sachs)?

Regarding the head of ATVI not believing in the mobile business model - reminds me of comments from the top brass of Atari in the mid '80's.

On Jan 12 12:06 PM Ryoga wrote:

> is this a joke?
>
> no one wants to buy a firm that:
> 1) doesn't make money
> 2) has high structural costs
> 3) owns no material IP
>
> the author forgot to mention that:
> 1) the crew that brought this baby public, called it a complete joke
>
> 2) the head of ATVI has publicly stated that he does not believe
> in the mobile biz model
> 3) firms could license product, and collect checks without ballooning
> their cost structure
> 4) Gameloft is a far better firm, and Ubi dumped its shares last
> year...
>
>
> Wall St guys are a riot sometimes
>
>