Kakao hopes to diversify its game content with a 10 billion won investment (USD $8.69 million) in mobile gaming developer Neptune, including a strategic partnership between the two companies.
The deal, which was announced yesterday, is a 50/50 joint investment between Kakao subsidiaries Kakao Games and the Kakao Game Growth Share Fund. A new agreement will see Neptune develop and release all future games for the Korean market on Kakao’s gaming platform, including two new games in the ‘Kakao friends’ series. Only sports titles are excluded from the partnership.
Neptune was first established in 2012 and has risen to become a strong contender globally in the mobile gaming market. The company’s ‘four rivers‘ puzzle game is popular in Japan and Taiwan, while in North America, its social casino games have proved to be a success. In 2015, 80% of Neptune’s revenue came from overseas business, and the developer was listed on the Korean stock exchange (KOSDAQ) in December last year. Eight new titles are penned to be released later this year including RPG ‘Hunter’s League’ and MOBA game ‘Black Survival’.
Kakao Games will work with Neptune to source and distribute games, while the fund – operated by K Cube Ventures – will offer business support. With the latest financial backing, Neptune is also planning to acquire other promising game developers in the future.
“With its proven track record in development and capable team, Neptune is recognized as one of the most outstanding game companies in recent years,” said Nam Goong-hoon, executive vice president of Kakao Games. “Kakao is working to continuously expand its lineup through powerful partners like Neptune, and will work to strengthen the competitiveness of the Kakao Games platform.”
