Netmarble agreed to acquire SpinX Games, a Hong Kong-based social casino gaming company, for $ 2.19 billion. The deal will expand the Korean gaming giant’s business beyond its local market in the face of the surge in games during the pandemic.
The Seoul-based company stated that the agreement will allow the company to “continue its global expansion by adding a new genre of games to its current extensive roster.”
“Netmarble is already a very large company.” Taiwan independent technical consultant Sean Su said. “I think the reason they would buy SpinX is that the Asian gaming market is a huge market, not just Hong Kong. It makes sense to buy SpinX because it is a great source of income.”
SpinX was founded in 2014, their games include Cash Frenzy, Lotsa Slots and Jackpot World. Netmarble CEO Lee Seungwon said in a statement: “The social casino type shows continued global growth and we are pleased to sign a share purchase agreement with SpinX Games, one of the leading companies of this type.”
Chris Marshall, Vice President of IDC Asia Pacific, noted that
SpinX is growing rapidly. Marshall added that Netmarble acquired the company to outperform the highly competitive Korean domestic market. “NetMarble faces fierce competition in South Korea, which is the dominant country in the mobile games industry in the Asia-Pacific region,” he said.
“We believe that NetMarble needs to strengthen its global influence and diversify its capabilities to remain competitive,” said Marshall.
“The acquisition of SpinX is one way to achieve this goal,” he said. “This acquisition allows Netmarble not only to expand its products to different types, but also to expand its global influence.”
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Analysts Predict the World’s Top Brands Trying to Occupy Games Due to Epidemics In the growing international market, there will be more cooperation in the gaming industry play. In a recent case, China-based Tencent said it would acquire Sumo, a British video game developer. Social game developer Zynga and digital entertainment company Electronic Arts also announced agreements to acquire other companies.
According to data from market research company Strategy Analytics, by 2025, the global gaming market is expected to grow from $ 150 billion last year to $ 250 billion. IDC predicts that from this year to 2025, monthly active mobile game users in Asia will grow at a compound annual growth rate of 4.9%.
“The boom in the gaming industry has led to an increase in mergers and acquisitions,” Marshall said, expecting more high-value mergers and initial public offerings in the next four years.