Nexon announced that it will sell its stake in social mobile game maker 6Waves to publisher Stillfront Group. The Tokyo-based video game company owns a 34.8 percent stake in 6Waves.
Stillfront Group is expected to pay $93 million to transfer 26.5 million shares, which will happen on January 31, 2022. On January 19, 2022, the board of directors for Nexon approved the sale of shares.
According to reports, Nexon said it was 6Waves that requested it sells its stake to Stillfront. However, in a released statement, Nexon clarified why it has decided to divest from 6Waves.
“Since 2011, Nexon and 6Waves have not achieved the business results initially expected, and the investment came to be positioned as a pure investment at Nexon. The investment at the time was made with an expectation that the partnership will generate synergy between Six Waves Inc.’s track record in social games and Nexon’s track record in the operations of popular online games and its expertise in the microtransaction model of monetization. Since then, Nexon and Six Waves Inc. have not achieved the business results initially expected, and the investment came to be positioned as a pure investment at Nexon,” said Nexon in a company statement.
Furthermore, Nexon stated that 6Waves’ “vision of further growth in the future” has motivated the company to sell its shares to Stillfront.
Nexon is yet to analyze the financial effects of the transaction will have on its Q1 results expected to be released later this year. However, the publisher predicts a year-over-year increase in revenues for its fourth quarter.
At the beginning of this month, Nexon invested $400 million in AGBO, a production company run by Anthony and Joe Russo, the directors of Avengers: Endgame. Last year, the company also invested $874 million in Bandai Namco, Sega, Konami, and Hasbro.
Meanwhile, Stillfront Group has acquired the mobile strategy game Rise of Firstborn—formerly known as Iron Throne: The Firstborn, from Netmarble Corporation last year.
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