South Korean online game developer Nexon has announced it will invest $1.5 billion in global entertainment companies to secure new growth engines.
Nexon’s Japanese subsidiary said in a regulatory filing on June 2 that it will invest $1.5 billion in other listed companies with the ability to create and maintain global entertainment assets. However, it did not mention the specific name of the firms that it plans to invest in. Last year it acquired Embark Studios, a game development studio in Sweden.
“Nexon wants to make smart investments that can make good use of cash it has in this market environment defined by low interest rates,” Nexon’s Japanese CEO subsidiary Owen Mahoney said. “The global entertainment industry is undergoing a profound shift from linear to interactive entertainment and we are looking for companies that can create various types of strong intellectual property assets in a wide range of markets and share Nexon’s vision that we have maintained for a long time.” Nexon said it held 518 billion yen ($4.8 billion) in cash as of March 31.
Mahoney said Nexon had no plans to take part in the management of the companies that it will invest in. “We will invest in companies that have a robust entertainment portfolio and have proven the ability to create and maintain great IPs, remaining as an investor that helps investees,” he added. (Reporting by Jinwon Lee)