[NX] [NC] Nexon Acquires 14.7% Share of NCSoft, Becomes Largest Shareholder
Nexon is once again back on an acquisition drive, but this year it seems the company is targeting bigger and more established companies to buy into. Last month Nexon completed a controversial acquisition of 34.6% of the shares of Taiwanese gaming giant Gamania and earlier this year an acquisition of 22.34% of JCE, becoming the leading shareholder in both companies. But today South Korea gaming was shaken up big time as the country’s largest game publisher by revenue Nexon Co. Ltd. became the largest shareholder in the fourth largest game publisher NCSoft Corp.
The deal was secured as Nexon gobbled up 3.2 million of NCSoft’s shares in a purchase totalling $685 million (804.5 billion KRW; 54.3 billion JPY).
This transaction brings together NCsoft’s strong pipeline of compelling IP and Nexon’s leading international publishing platform and expertise in the operation of free-to-play online games. This investment forms the basis of a long-term partnership, enabling both companies to leverage their strengths to facilitate attractive commercial opportunities. By creating this strategic relationship, both Nexon and NCsoft strengthen their commitment to deliver unrivaled gaming experiences to users around the world.
In the 2011 financial year Nexon reported revenues of $1.2 billion (1.27 trillion KRW; 87.6 billion JPY) while NCSoft reported revenues of $518 million (608.8 billion KRW; 41.1 billion JPY).