Nexon, a Tokyo-based company that handles the distribution of games like Maplestory, has invested this week a total of $ 874 million in video game companies like Hasbro, Bandai Namco, Konami y Sega Sammy. From the Japanese firm they have indicated that they have obtained an unrealized gain (or “paper” profit) of $ 279 million in long-term investments; Nevertheless, they maintain that it is not in their plans to acquire these companies or make proposals to shareholders.
Nexon makes a multimillion dollar investment in video game companies
“We believe that companies, with strong and well-managed global intellectual property, are often overlooked and underestimated in a market that is narrowly focused on the introduction of new intellectual property“said the CEO of Nexon, Owen Mahoney, it’s a statement. “These investments reflect our respect for the management teams that create and grow global properties. over a period of years and decades. We believe each has the potential to capitalize on the secular shift from linear formats to interactive entertainment. “
It is not the first time that Nexon performs a similar maneuver: in 2020, the firm authorized a disbursement of up to $ 15 billion that were intended for investments in those entertainment companies that demonstrate “the ability to develop and maintain strong intellectual property recognized worldwide”. Is about favorable long-term investments with no intention of acquisition or participation in the shares. At the end of that same year, Nexon completed investments for a total of 874 million (58% of the amount they authorized).
Nexon invests in companies with “the ability to develop and maintain strong intellectual property”
“These investments represent a good use of our cash in a low interest environment and we are extremely satisfied with the initial results, “Mahoney continues.” While leveraging partnerships was not a consideration in our investment decisions, we are pleased with the dialogue that has taken place with some companies“.
Nexon owns $ 4.8 billion in cash, with shareholders wondering what the company will do with that money. Last 2019, the founder of the company Kim Jung-ju it puts its shares up for sale (equivalent to 8 billion euros); while the company continues to generate more cash through games like Maplestory and Dungeon Fighter, which continue to enjoy enormous growth. In 2020 Nexon posted $ 2.7 billion in revenue. Disney he was trying to acquire the company, but finally there was no agreement.