The South Korean gaming firm Nexon recently purchased a $400 million stake in Joe and Anthony Russo’s entertainment company, AGBO. As a result of this deal, Nexon now has at least a 38% stake in the organization, making it the business’ largest individual shareholder. Additionally, this deal values AGBO at $1.1 billion, according to Nexon.
“Film and television have been proven to drive higher engagement and longevity for game franchises, and we are now partnered with the best creators and adapters of franchise IP in film and television,” said Nick van Dyk, the president of Nexon Film & Television.
This agreement will also help Nexon expand its services beyond gaming as China continues to crack down on esports and video games. Despite new regulations, China made up 30% of Nexon’s 2021 revenue.
AGBO is an entertainment company that was founded in 2017 by brothers Joe and Anthony Russo. These two are best known for directing Avengers: Endgame, one of the highest-grossing movies of all time.
The Profit‘s Take:
This feels like a great buy for Nexon. I really like this move. It also further proves my point that IP is king in the entertainment industry. Nexon only needs AGBO to make one or two hits in order to make back most of the money it invested. The valuation also seems very reasonable. There’s a lot of potential synergy here with the Russo brothers and Nexon joining forces.
(All information was provided by Forbes)