Messaging app agency Line has given up majority management of its Line Video games enterprise after it raised exterior financing to increase its assortment of titles and go after international alternatives.
The Line Video games enterprise was fashioned earlier this yr when Line merged its present gaming division from NextFloor, the Korea-based sport writer that it acquired in 2017. Now the enterprise has taken on capital from Anchor Fairness Companions, which has supplied 125 billion KRW ($110 million) in financing by way of its Lungo Leisure entity, in line with a disclosure from Line.
A Line spokesperson clarified that the deal will see Anchor purchase 144,743 newly-created shares to take a 27.55 % stake in Line Video games. That enhance means Line Corp’s personal shareholding is diluted from 57.6 % to a minority 41.73 % stake.
Korea-based Anchor is finest recognized for a lot of offers in its homeland together with investments in e-commerce big Ticket Monster, Korean chat big Kakao’s Podotree content material enterprise and vogue retail group E-Land.
Line operates its eponymous chat app which is the most well-liked messaging platform in Japan, Thailand and Taiwan, and likewise considerably utilized in Indonesia, however gaming is a significant supply of earnings. This yr thus far, Line has made 28.5 billion JPY ($250 million) from its content material division, which is primarily digital items and in-app purchases from its social video games. That division accounts for 19 % of Line’s whole income, and it’s a determine that’s solely higher by its promoting unit, which has grossed 79.three billion JPY, or $700 million, in 2018 thus far.
The video games enterprise is presently centered on Japan, Korea, Thailand and Taiwan, but it surely stated that the brand new capital will go in direction of discovering new IP for future titles and figuring out video games with international potential. It is usually open to extra strategic offers to broaden its focus.
Whereas Line has at all times been huge on video games, Line Video games isn’t simply constructing for its personal service. The corporate stated earlier this yr that it plans to deal with non-mobile platforms, which can embrace the Nintendo Change amongst others consoles.
That comes from the addition of NextFloor, which is finest recognized for titles like Dragon Flight and Future Baby. Dragon Flight has racked up 14 million customers since its 2012 launch, at its peak it noticed $1 million in day by day income. Future Baby, a more moderen launch in 2016, topped the charts in Korea and has been well-liked in Japan, North America and past.
Line went public in 2016 by way of a twin U.S.-Japan IPO that raised over $1 billion.
Notice: the unique model of this text was up to date to make clear that Lungo Leisure is shopping for newly-issued shares.