In recent times many game developing companies are showing interest in taking share stakes in entertainment companies. Nexon is the latest to show interest in an entertainment company. Following are all the details about the deal and why did the company take a share.
Nexon is a South Korean gaming company that specializes is in making online games. Their biggest market is China from where they almost generate 50% of their revenue. In China though the government is putting restrictions on the amount of time people can put into playing video games. The government has also stopped the development of a dozen of games to bring down gaming hours of the entire nation. To counter this Nexon founder Kim Jung-Ju Has finalized a $400 million deal with the entertainment company known as AGBO. AGBO is an entertainment company based in Los Angeles. The organization was founded by the Russo Brothers who are the directors of the movies like Avengers: Infinity War and Endgame. AGBO was founded in 2016 and has made some of the best TV shows and movies of the modern times. So far the organization has made six movies and a number of projects are in the pipeline for the year 2022.
With the deal, Nexon is now the owner of about 38% of AGBO’s stacks. After the deal AGBO now has a net worth of $1.1 billion. Nexon is also now the biggest shareholder of AGBO. The video games made by Nexon hard generated a good amount of money for the company. At first they mainly made PC games but as the smart phones became popular the company also made a good transition to making mobile phone games. With now the restrictions coming in China, the deal with AGBO seems like a good option for the video game company.