Sony Music to acquire major stake in GungHo Online Entertainment

Sony Music Entertainment Japan is set to become the largest shareholder of GungHo Online Entertainment through a capital and business alliance. The company will acquire approximately 22.9% of GungHo's outstanding shares, representing 23.29% of voting rights, for approximately 28.6 billion yen ($178.7 million).

The transaction involves purchasing 12,006,500 common shares from the current largest shareholder, SON Financial LLC, at 2,385 yen per share. The deal is scheduled for completion on December 30, pending regulatory review and approval from the Japan Fair Trade Commission.

Under the alliance, the two companies plan to collaborate on the development and operation of video games for smartphones, consoles, and PC. This includes exploring the integration of Sony Music Group intellectual property with GungHo titles, such as ‘Puzzle & Dragons’. Despite the acquisition, GungHo will maintain its management independence and remain listed on the Tokyo Stock Exchange Prime Market.