Korean Gaming Businesses Are Seeking Ways to Expand Their Operations.
As of recent, NCSoft has become determined to recruit investment specialists. The company’s investment target is a non-gaming industry, which could create some synergy within the game industry.
NHN Entertainments and Nexon are also trying to pull of similar investments in the industries not involved with games. Such moves by Korea’s most successful and respectable publishing companies will be interpreted as attempts to change the structure of business due to the stagnating growth of the video game industry.
According to the industry, during May 15th NCSoft began to search for professionals that could take charge of M&A and equity business investments.
An NCSoft official spokesperson stated, “We are looking for the right people to meet the company policy to expand investment in other areas.”
The company is searching for talents for the job who are capable of not only magnifying the competitiveness of currently existing businesses but also fulfilling future growth in other various areas. NCSoft is also know to contains a total of 123.3 billion won in cash and cash equivalent assests, the properly loaded ammunition for investments.
During the previous month, NCSoft has dealt a 5 billion won investment into Lezhin Entertainment. According to the company’s official spokesperson, the video game industry has been closely associated with other cultural content industries that have included the cartoons, animation and character businesses. Because of this reason, NCSoft is considering for ways to merge these businesses together on a synergy effects and created added value.
NCSoft has recorded an annual growth of up to 35 percent on average for five consecutive years since 2008. but year-on-year growth has only been up to 0.4 percent during 2013. With these numbers becoming a concerning matter, the growth of the gaming business might be coming to a halt, the company seems to become even more driven into causing investments into areas that are not involved in games.
Having already scored a series of big-times M&As, Nexon is accelerating its strides. Nexon’s holding company NXC has taken over a European Stroller company by the name of Stokke during the previous year.
President of NXC, Kim Jeong-ju, the founder of NExon, has also been making a capital investment into a U.S. collaborative fund and partaken in the investment evaluation.
NHN Entertainment has spent up to a total of 120 billion won, in order to invest and takeover nine companies since near the end of the previous year. The company has decided to take complete control of a security company named P&C Secure and invested in eight other companies that include an education business named ST&Company.
NHN is also working on trying to acquire Ticket Link. NHN CFO Ahn Hyun-shik had commented during a conference call that the company plans to “invest in businesses which can create synergies with the gaming business”