South Korea’s largest mobile-gaming company Netmarble was chosen as the preferred bidder for Woongjin Coway on Oct. 14.
The board of Woongjin Thinkbig which owns 25.08 percent stake in the rental company has approved the sale. Netmarble has reportedly offered about 1.83 trillion won ($1.54 million) for the acquisition.
On Oct. 10, the game company said it participated in the Coway deal as it hopes to create synergies in the growing rental business.
NetMarble investors look Woongjing Coway deal with a wary eye
“Given that this acquisition actively utilizes Netmarble’s cash reserves and that the game industry is a business based on the popularity of games, the company will be able to secure stable cash flow from Woongjing Coway’s rental business,” said Ahn Jae-min, an analyst with NH Investment and Securities.
“But It is not easy to imagine any synergies between the game and rental businesses.”
Games are based on individual players who are mainly young males in their 20s and 40s whereas smart home businesses rely on households, he pointed out.
Since the news that Netmarble entered the fray on Oct. 10, shares of the company have declined. Its share price fell almost 0.5 percent in morning trading on Oct. 14, following a 3.5 percent decline in the previous session.
By Park Ga-young (email@example.com