Nexon makes $874m 'friendly investment' in Bandai Namco, Konami, SEGA

Overseas mobile titan Nexon has invested a substantial $874 million into Japanese game companies like SEGA, Konami, and Bandai Namco.

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Nexon is sinking $1.5 billion in specific games companies in a bid to help preserve high-quality IP creation and curation. The company has already invested 58% of this cash into a trio of beleaguered games-makers like SEGA, Konami, and Bandai Namco, all of which have been hit particularly hard by COVID-19.

Nexon corporate heads say this is a "friendly investment" and the company has no intention of takeovers or acquisitions. Buying out Konami, Bandai Namco, or SEGA simply isn't feasible for Nexon, who made $2.2 billion in 2019, more than Konami ($1.3bn) and SEGA ($1.15bn) but less than Bandai Namco ($3bn).

"We believe companies with strong, well-managed global IP are often overlooked and undervalued in a market that is narrowly focused on introductions of new IP," said Owen Mahoney, President and CEO of Nexon. "These investments reflect our respect for management teams that create and grow global properties over a period of years and decades. We believe that each has potential to capitalize on the secular shift from linear formats to interactive entertainment."

Mahoney continued, "These investments represent a good use of our cash in a low-interest environment and we are extremely pleased with the initial results. While leveraging partnerships was not a consideration in our investment decisions, we are pleased with the dialogue that has ensued with some companies."

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