Krafton promises earnout in acquisition of Unknown Worlds Korean game developer sees growth potential in Unknown Worlds' upcoming games
Translated by Kim So-in 공개 2021-11-04 07:58:50
이 기사는 2021년 11월 04일 07:51 thebell 에 표출된 기사입니다.
South Korean gaming firm Krafton has decided to take over US video game developer Unknown Worlds Entertainment for $500 million, more than 10 times the US firm’s net asset. Krafton has also agreed to provide an earnout payment of up to $250 million until 2026, depending on the US game developer’s future performance as it aims to capitalize on the company's strong growth potential.Unknown Worlds is estimated to have recorded $46.3 million in revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) of $29.6 million in the first seven months of 2021, which already exceeded the previous year’s $35.8 million and $10.7 million, according to Krafton on Tuesday.
Unknown Worlds had $48.37 million in assets as of the end of July, of which capital was $43.34 million and liabilities were $5.03 million. Its debt ratio stood at 11.6%, which is regarded as financially sound. Samdo Accounting firm, which conducted due diligence on Unknown Worlds, estimated the US firm’s revenue to increase to $75.7 million in 2022 and $129 million in 2025, up 3.6 times compared to that of 2020.
California-headquartered Unknown Worlds is known for unique creativity-based PC and console games such as Half-Life Mod, Natural Selection series, and Subnautica. It launched Subnautica: Below Zero in May.
Given the company’s rosy prospects and financial soundness, Krafton has set the acquisition price at $500 million, more than 10 times the Unknown Worlds’ net assets and 10-15 times its estimated EBITDA for this year.
In addition, Krafton will pay an earnout of up to $250 million if two new titles, which are being prepared by Unknown Worlds, meet certain milestones by 2025. Unknown Worlds is scheduled to release a new game 'Project 1' next year, and is aiming for its global release in May 2023. Its 'Project 2' is currently under development to be launched in 2024.
Krafton will pay the lesser of an adjusted post-deal revenue multiplied by a certain multiple or $250 million.
“While mobile games are the mainstream of the Korean game market, console games that require dedicated game devices like PlayStation are the mainstream in North America,” a gaming industry source said. “Krafton has made a big bet on Unknown Worlds as it aims to enter the US market through console games.” (Reporting by Choong-hee Won)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [코스닥 CB 프리즘]서진시스템, 보통주 전환 물량에 30% 할증 풋옵션 '이례적'
- 에쓰씨엔지니어링 자회사 셀론텍, 태국에 ‘카티졸’ 공급
- 메트라이프생명, 잇단 사외이사 재선임...송영록 대표 체제도 유지될까
- [보험사 IFRS17 조기도입 명암]현대해상, 단순한 상품구조 '부채 감소' 효과는 컸다
- [저축은행 유동성 진단]NH저축, '안전자산' 투자가 이끈 유동성 개선
- [저축은행 유동성 진단]우리금융저축 '영업 확대'로 끌어올린 유동성
- [저축은행 유동성 진단]하나저축, 대출 영업 축소 대신 '예치금 확대'
- [외국계 보험사는 지금]한국시장 엇갈린 시선 '매력 감소 vs 전략 요충지'
- [닻오른 롯데손보 매각]금융지주와 사모펀드…관점별 이상적 인수자는
- [캐피탈사 글로벌 모니터]JB우리캐피탈, 미얀마 영업 제한 건전성 관리 만전