Chinese gaming company Kingnet Network is investing approximately 400 billion won in the acquisition of Wemade's management. Kingnet, which has been embroiled in a legal dispute with Wemade over the 'Mir' intellectual property (IP) for nearly a decade, is now moving to acquire the company.
On September 14, Wemade announced that a consortium of investors, including NeoPulse and Kingnet, is proceeding with the necessary steps for the transaction's completion, including payment of the remaining balance and regulatory approvals by October 30. NeoPulse has agreed to acquire a 39.33% stake from Wemade Chairman Park Kwan-ho for 920 billion won, with 828 billion won of that amount still pending.
Instead of directly acquiring Wemade shares, Kingnet will invest in NeoSphere, the parent company of NeoPulse, securing a 49% stake. The key issue is whether the necessary procedures for the transaction can be completed by the scheduled payment date of October 30. Wemade has stated that it is currently working on the 'various procedures required for transaction completion, including regulatory approvals.'
When Chinese capital makes large investments in overseas companies, it may require notifications and approvals related to foreign direct investment in China, depending on the nature and scale of the investment. In South Korea, acquiring a significant stake that includes management rights may also trigger corporate merger notifications and reviews.
If the necessary procedures for transaction completion are not finalized by October 30, the payment schedule may change according to the terms of the stock purchase agreement (SPA) signed by both parties. Industry insiders suggest that if there are delays in the overseas investment procedures, the payment schedule may be adjusted through negotiations between the two sides.
Wemade has been tight-lipped about the progress of the transaction. A Wemade representative stated, 'We apologize for not being able to provide more specific details regarding the ongoing matter, and we will share additional information in accordance with related procedures if necessary.'
The significance of Kingnet's participation in this transaction is underscored by its past relationship with Wemade. Kingnet was involved in a prolonged legal dispute with Wemade over royalty payments for the 'Legend of Mir 2' IP. In April of this year, Wemade settled the dispute, receiving approximately 43 billion won.
Just a few months later, Kingnet is now investing in the acquisition of Wemade's management, marking a reversal in the relationship between the two companies. Following the acquisition, Kingnet plans to pursue business collaboration utilizing the Mir IP alongside NeoPulse. However, specific details regarding licensing regions, duration, and target games have not been disclosed.
* This article has been translated by AI.
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