Kakao Games to Buy 39.56% Stake in ME2ON for $70.9 Million, Securing Control
Summary
- Kakao Games said in a filing that it will acquire a 39.56% stake in ME2ON for about $70.9 million to secure management control.
- ME2ON posted $87.4 million in revenue and $9.1 million in operating profit last year, with overseas sales accounting for more than 80% of the total.
- Kakao Games said it plans to expand synergies through ME2ON's drama, webtoon and web novel IP, joint development with Chinese studios, and additional M&A going forward.
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Kakao Games said it will acquire South Korean casual game developer ME2ON.
In a filing on September 15, the company said it will purchase a 39.56% stake in ME2ON for about $70.9 million, securing management control. The share acquisition is scheduled for November 16. Once the deal closes, Kakao Games will become ME2ON's largest shareholder.
Founded in 2010, ME2ON operates across Asia, North America and Europe, focusing on social casino games, casual games and mind sports. The company posted revenue of $87.4 million and operating profit of $9.1 million last year. More than 80% of its sales came from overseas markets.
Kakao Games plans to expand its business by leveraging ME2ON's content and intellectual property, including dramas, webtoons and web novels. It also aims to broaden synergies through joint development with Chinese studios and pursue additional mergers and acquisitions.
