[NX] [Gam] Taiwan’s FTC Investigating Nexon’s Takeover Bid of Gamania
Taiwan’s Fair Trading Commission (FTC) is investigating the takeover bid and, depending on the results of the investigation, the FTC may fine Nexon up to NT$25 million ($830,000) and nullify the takeover.
Based on Taiwan’s Fair Trade Act, any takeover involving a company with more than a quarter of market share must be filed to the FTC in advance. Nexon, however, failed to do so.
Nexon is claiming the the market of which Gamania is a part is the digital content market which includes digital games and DVDs. If Gamania is classified in this market then it will not have over a quarter of market share and Nexon did not have to report to the FTC in the first place. However, the FTC is not taking Nexon’s word for it and will conduct investigations into whether Gamania fits into this category or into the category of online gaming, in which case Gamania does have over a quarter of market share.
Taiwan’s Economic Minister, Shih Yen-shiang, said that the Taiwanese government will support Gamania in its position that it will corporate with others but does not welcome any hostile takeover attempts.
And the saga continues on the next episode of Nexon’s Attempted Acquisition of Gamania.