Nexon has disclosed investments in companies such as Hasbro, Sega Sammy, Bandai Namco and Konami – investing a total of $874 million in 2020.
Nexon’s board authorized up to $1.5 billion for investment in entertainment companies in 2020, focusing on companies with “the ability to develop and sustain strong globally recognized intellectual property.” These are long-term investments with no intention of acquisition or activism.
Naxon’s completed investments totalled ¥92.4 billion ($874 million), representing 58 per cent of the authorised amount, and recorded an unrealized gain of ¥29.5 billion ($279 million under other comprehensive income.
“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.
“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.”
In 2020, Nexon generated revenues of ¥293.0 billion and operating cash flow of ¥137.6 billion. As of December 31st, the company has ¥525.7 billion in cash on the balance sheet.