Nexon, the Tokyo-based maker of Maplestory and different on-line video games, has invested $874 million in Hasbro, Bandai Namco, Konami, and Sega Sammy.
Nexon stated it has made an unrealized acquire of $279 million on the long-term investments, nevertheless it has no intention of buying the businesses or making activist shareholder proposals with the investments.
Nexon made different investments as properly, however the quantities didn’t meet the corporate’s threshold for disclosure.
In 2020, Nexon’s board approved as much as $1.5 billion for funding in leisure firms that show the power to develop and maintain robust globally acknowledged mental property.
These are long-term pleasant investments with no intention of acquisition or activism. As of the tip of 2020, Nexon accomplished investments totaling ¥92.4 billion ($874 million) which represents 58% of the approved quantity.
“We imagine firms with robust, well-managed international IP are sometimes ignored and undervalued in a market that’s narrowly targeted on introductions of recent IP,” stated CEO Owen Mahoney, in a press release. “These investments replicate our respect for administration groups that create and develop international properties over a interval of years and a long time. We imagine that every has potential to capitalize on the secular shift from linear codecs to interactive leisure.”
Mahoney added, “These investments characterize a superb use of our money in a low-interest surroundings and we’re extraordinarily happy with the preliminary outcomes. Whereas leveraging partnerships was not a consideration in our funding selections, we’re happy with the dialogue that has ensued with some firms.”
Nexon has $4.8 billion in money, and shareholders have puzzled how the corporate would make investments that cash. Nexon has began a share buyback program, nevertheless it retains producing additional cash by video games reminiscent of Maplestory and Dungeon Fighter, which have maintained stable development by a long time. Nexon had $2.7 billion in revenues in 2020.
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