Kingnet invests $298m to join consortium behind $684m Wemade deal
- Kingnet and Wemade previously faced years of legal disputes over The Legend of Mir royalties.
- The companies reached an agreement earlier this year to resolve their disputes.
- The consortium plans to expand Wemade’s publishing and IP licensing opportunities in China and other global markets.
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Chinese game developer Kingnet Network has revealed plans to invest $298 million in a consortium set to become Wemade’s largest shareholder.
As reported by The Korean Herald, the move turns a former legal adversary into a strategic partner for expanding the Korean publisher’s business in China.
According to a regulatory filing on the Shenzhen Stock Exchange, Kingnet’s wholly owned Hong Kong subsidiary, Cypress Technology HK, will acquire a 49% stake in Neosphere and inject approximately $298m into the company through a capital increase.
Nexpulse, which currently owns Neosphere, will contribute at least $310.2m and retain a 51% stake.
Ownership structure
Neosphere indirectly controls NeoPulse through Hong Kong-based Shengsong Investment. NeoPulse currently owns 0.92% of Wemade and agreed in June to purchase a further 39.33% stake from chairman Park Kwan-ho for approximately $684m.
The parties will proceed with the remaining payment and regulatory approval procedures through October 30th.
The investment brings together Wemade and Kingnet after years of legal disputes over royalties related to The Legend of Mir. The companies reached an agreement earlier this year to resolve their disputes in Korea, China and Singapore.
Following completion, the consortium plans to expand publishing and core IP licensing opportunities in China and other global markets.
