Tencent Holdings Ltd (0700.HK), the Chinese social networking and online entertainment company, has agreed to buy 14.6% of mobile game developer Glu Mobile Inc (GLUU.O) for $126 million. The invest enables Tencent to expand in the U.S. gaming market where Glu Mobile has a strong user base. 

Shares of Glu Mobile, which developed Deer Hunter and Kim Kardashian: Hollywood games, rose about 24 percent in extended trading on Wednesday. Glu Mobile reported a better-than-expected profit for the eighth straight quarter on Wednesday, helped by strong demand for games such as Racing Rivals, Deer Hunter 2014 and Contract Killer: Sniper. The company plans to launch a mobile game with pop star Britney Spears in the first half of 2016.

For the first quarter, Glu Mobile’s earnings rose to $1.1 million from $133,000. On a per-share basis, earnings were a penny a share in the latest quarter. Total revenue increased 56% to $69.5 million. Excluding deferred revenue, the company’s top line increased 33% to $62.4 million.

Glu Mobile raised its 2015 forecast for revenue, excluding deferred revenue. The company on Wednesday said the range is now between $262 million and $287 million, up from its February estimate of $245 million to $275 million. Glu Mobile’s shares were trading at $6.69 after the bell.

Tencent, known for investing in game developers through partnerships and minority stakes, owns League of Legends developer Riot Games and has a stake in Activision Blizzard Inc (ATVI.O), the owner of the Call of Duty franchise.

Tencent has been aggressively taking on Chinese giants such as Alibaba Group Holding Ltd (BABA.N) and Xiaomi Inc [XTC.UL] in the technology industry.  The company recently launched an operating system for internet-connected devices such as TVs and watches that is open to all developers.

The Chinese company will pay $6 per share for its stake in Glu Mobile. The price represents a premium of about 11 percent to the stock’s Wednesday close.