Krafton has purchased ADK, a Japanese advertising firm that specializes in animation production.
This acquisition is seen as a strategy to broaden its business by venturing into new content areas, such as animation, beyond gaming.
Despite the success of its popular intellectual property (IP) Battlegrounds, some analysts suggest that relying solely on the gaming sector poses a challenge for future growth.
On the 24th, Krafton convened a board meeting and announced its decision to acquire BCJ-31, a subsidiary of Bain Capital Japan.
The purchase price is set at 75 billion yen (approximately 710.3 billion won), allowing Krafton to gain complete ownership of the company.
BCJ-31 serves as the parent company of ADK Holdings, which includes major subsidiaries within the ADK Group.
With this acquisition, Krafton plans to incorporate ADK Group as a consolidated affiliate.
ADK possesses content planning and production capabilities, having participated in over 300 animation production committees.
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Krafton, which has risen to prominence as a global gaming company thanks to the success of Battlegrounds, is broadening its investment focus not just to various gaming companies but also to content firms, aiming to lessen its reliance on Battlegrounds and diversify its revenue streams. In September of last year, it invested 120 billion won in Spoon Labs, which runs the short-form drama platform "Viglu."
The acquisition of ADK by Krafton is also viewed as a strategy to explore new revenue opportunities by entering the Japanese content market. There are also expectations of collaborations between Krafton's IP and animation, with a particular emphasis on Battlegrounds.
This move presents an opportunity for Krafton to strengthen its foothold in the Japanese market. Previously, Krafton made its inaugural investment in Japan by acquiring Tango Gameworks, a game developer, from Microsoft.
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Krafton has additionally outlined plans to broaden its reach within the entire Japanese content sector by leveraging its gaming capabilities alongside the advertising and media expertise that ADK has developed over the years.