Kakao Games is accelerating its business restructuring following a change in major shareholders and the launch of a new management system. Originally starting as a game channeling service, Kakao Games has expanded its operations to include publishing and development. As it marks its 10th anniversary this year, the company is focusing on securing growth through successful new releases and mergers and acquisitions (M&A).
According to Kakao Games, its multiplayer role-playing game (MMORPG) 'The World of Goblins,' officially released on October 8, reached the top of the domestic Google Play sales rankings just five days later, on October 13. The game quickly entered the top sales charts of both major app markets and achieved early commercial success by claiming the number one spot on Google Play.
Kakao Games aims to build on the success of its new releases while also enhancing the competitiveness of its existing business. The company is set to officially launch the action role-playing game (RPG) 'Path of Exile 2,' developed by Grinding Gear Games, on December 12. This new title is part of a strategy to expand its user base in South Korea and stabilize the services of key games.
Founded in 2016, Kakao Games began its operations based on platforms like Kakao Games and Daum Games. It has since broadened its scope to include game publishing, showcasing a variety of genres in both domestic and international markets. The company has managed services for popular PC online games such as 'PlayerUnknown's Battlegrounds' and 'Black Desert,' while also developing a diverse lineup of mobile games, ranging from casual games utilizing Kakao Friends intellectual property (IP) to subculture RPGs.
In recent years, Kakao Games has focused on securing development capabilities and diversifying its business structure, moving beyond just game discovery and distribution to include development. However, it now faces the challenge of maintaining the competitiveness of its existing operations while securing new growth drivers.
Following its governance restructuring, Kakao Games is also accelerating its business expansion. After a change in major shareholders in June, the company decided in September to acquire the global gaming company MeTooOn. This marks the first major M&A initiative since the establishment of its new co-CEO system.
On September 15, Kakao Games held a board meeting and approved an investment of approximately 98 billion won to acquire a 39.56% stake in MeTooOn. Once the transaction is completed, Kakao Games will become the largest shareholder of MeTooOn, securing management control.
This acquisition will allow Kakao Games to expand its existing portfolio of MMORPGs and subculture-focused games to include social casino and casual games. The strategy is seen as a move to incorporate a company with a high proportion of overseas sales, thereby broadening its global business base and diversifying its revenue structure.
* This article has been translated by AI.
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