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Sony Music Entertainment Japan, GungHo Online Entertainment Form Capital, Business Alliance
posted on by Adriana Hazra
GungHo Online Entertainment announced on Friday that it is entering into a capital and business alliance with Sony Music Entertainment Japan (SME). SME will acquire shares of GungHo in an off-market bilateral transaction for the total offering price of 28,635,502,500 yen (about US$179,347,387).
The details of the business alliance are not yet finalized but will involve "exploring joint development and joint operation of smartphone games, console games, and PC games operated and distributed by [GungHo Games]" as well as "exploring new game projects including the utilization of intellectual property of the SME Group."
The companies entered into a share transfer agreement on Friday for SME to acquire 12,006,500 shares of GungHo from SON Financial LLC. The companies plan to complete the acquisition by December 30. Pending regulatory approvals this deal will make SME the largest shareholder of and an affiliated company of GungHo Online Entertainment. GungHo plans to maintain its management independence as a publicly listed company on the Tokyo Stock Exchange Prime Market.
SME launched its game publishing label named UNTIES in October 2017.
GungHo Online Entertainment is known for its puzzle game Puzzle & Dragons. The company hosts the Japanese server of the MMORPG Ragnarok Online. GungHo has also worked on the TEPPEN, Ninjala, and Disney Pixel RPG games.
GungHo's CEO, President, and Representative Director Kazuki Morishita stepped down from his positions on February 1. CFO, Director, and Executive General Manager of Finance Accounting Division Kazuya Sakai became the new CEO, President, and Representative Director on the same day.
Source: GungHo Online Entertainment's website (link 2) via Gematsu
