Nexon, the Tokyo-basically based maker of Maplestory and other on-line video games, has invested $874 million in Hasbro, Bandai Namco, Konami, and Sega Sammy.
Nexon stated it has made an unrealized comprise of $279 million on the long-term investments, nonetheless it has no arrangement of acquiring the firms or making activist shareholder proposals with the investments.
Nexon made other investments as successfully, nonetheless the quantities did no longer meet the corporate’s threshold for disclosure.
In 2020, Nexon’s board licensed up to $1.5 billion for investment in entertainment firms that prove the potential to invent and hold steady globally identified mental property.
These are long-term pleasurable investments and not using a arrangement of acquisition or activism. As of the tip of 2020, Nexon completed investments totaling ¥92.4 billion ($874 million) which represents 58% of the licensed quantity.
Above: Owen Mahoney, CEO of Nexon
Image Credit: Nexon
“We deem firms with steady, successfully-managed worldwide IP are most ceaselessly overpassed and undervalued in a market that’s narrowly targeted on introductions of latest IP,” stated CEO Owen Mahoney, in an announcement. “These investments replicate our admire for administration groups that compose and grow worldwide properties over a duration of years and decades. We deem that every has seemingly to capitalize on the secular shift from linear formats to interactive entertainment.”
Mahoney added, “These investments signify a shimmering employ of our cash in a low-pastime atmosphere and we are extremely at ease with the preliminary outcomes. While leveraging partnerships used to be no longer a consideration in our investment choices, we are at ease with the dialogue that has ensued with some firms.”
Nexon has $4.8 billion in cash, and shareholders comprise puzzled how the corporate would make investments that money. Nexon has started a share buyback program, nonetheless it retains generating extra cash by video games resembling Maplestory and Dungeon Fighter, which comprise maintained solid enhance by decades. Nexon had $2.7 billion in revenues in 2020.
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