Kakao Games (representatives Nam Gung-hoon and Cho Gye-hyeon) acquires Lionheart Studio (representative Kim Jae-young), the developer of the mobile game ‘Odin’. It secures a 30.37% stake through its 100% subsidiary Kakao Games Europe, effectively becoming the largest shareholder. Kakao Games already holds a 21.58% stake in Lionheart Studio. A put option contract was also signed, leaving open the opportunity to secure additional shares.
On the 1st, Kakao Games announced that its subsidiary Kakao Games Europe signed a contract to acquire approximately 30.37% of Lionheart Studio’s shares. The number of shares acquired is 225,260, and an advance payment of 450 billion won is paid. The final acquisition amount will be confirmed by conditions agreed upon by both companies based on a total of 12 months of performance from July 1, 2021 to June 30, 2022.
To this end, Kakao Games participated in Kakao Games Europe’s paid-in capital increase to a third party worth 450 billion won. In addition, we will strengthen our partnership by conducting a paid-in capital increase worth 209 billion won to a third party for four key executives and employees of Action Square, including CEO Jae-young Kim. A put option contract was also concluded with stakeholders such as Lionheart Studio and CEO Kim Jae-young, providing an opportunity to secure additional shares in the future.
Kakao Games also plans to sign a global copyright contract for ‘Odin’ and take charge of servicing the overseas market.
Through this investment, Kakao Games plans to strengthen its global competitiveness by collaborating with Lionheart Studio, which has proven development capabilities and successful game intellectual property rights (IP).
Lionheart Studio was founded in 2018 by famous developer Jaeyoung Kim and produced ‘Odin’, which was released last June. ‘Odin’ ranked first in domestic Google Play game sales, establishing itself as one of the most successful games of the year.
Kakao Games signed its first partnership with Lionheart Studio in August 2018, and subsequently made an additional strategic investment in May 2020, securing a 21.58% stake. With this investment, the total stake will be 51.95%.
Kakao Games CEO Cho Gye-hyun said, “We are very happy to be able to start and grow together with Lionheart Studio, which has excellent development capabilities and talent.” He added, “By building a close relationship between the two companies, we will provide stable services in Korea as well as good services in the global market.” “I will do my best to make it happen,” he said.
Source: Pangyo Techno Valley Official Newsroom
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