Messaging app agency Line has given up majority management of its Line Games enterprise after it raised exterior financing to broaden its assortment of titles and go after world alternatives.
The Line Games enterprise was fashioned earlier this yr when Line merged its existing gaming division from NextFloor, the Korea-based recreation writer that it acquired in 2017. Now the enterprise has taken on capital from Anchor Equity Partners, which has supplied 125 billion KRW ($110 million) in financing by way of its Lungo Entertainment entity, according to 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 p.c stake in Line Games. That enhance means Line Corp’s personal shareholding is diluted from 57.6 p.c to a minority 41.73 p.c stake.
Korea-based Anchor is finest identified for a lot of offers in its homeland together with investments in e-commerce big Ticket Monster, Korean chat giant Kakao’s Podotree content business and vogue retail group E-Land.
Line operates its eponymous chat app which is the preferred messaging platform in Japan, Thailand and Taiwan, and in addition considerably utilized in Indonesia, however gaming is a serious supply of earnings. This yr up to now, Line has made 28.5 billion JPY ($250 million) from its content division, which is primarily digital items and in-app purchases from its social video games. That division accounts for 19 p.c 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 up to now.
The video games enterprise is presently targeted on Japan, Korea, Thailand and Taiwan, but it surely mentioned that the brand new capital will go in direction of discovering new IP for future titles and figuring out video games with world potential. It can also be open to extra strategic offers to broaden its focus.
While Line has at all times been huge on video games, Line Games isn’t simply constructing for its personal service. The firm mentioned earlier this yr that it plans to concentrate on non-mobile platforms, which can embody the Nintendo Switch amongst others consoles.
That comes from the addition of NextFloor, which is finest identified for titles like Dragon Flight and Destiny Child. Dragon Flight has racked up 14 million customers since its 2012 launch, at its peak it noticed $1 million in each day income. Destiny Child, a more recent launch in 2016, topped the charts in Korea and has been common 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.
Note: the unique model of this text was up to date to make clear that Lungo Entertainment is shopping for newly-issued shares.