GungHo Online Entertainment is showing a buy indication, with Sony Music Entertainment, a Sony Group company, expected to enter into a share transfer agreement to acquire a substantial stake in the company through an off-auction purchase. The companies are expected to consider joint development and operation projects and other initiatives, subject to entering into a capital and business alliance agreement.
GungHo Online Entertainment's share price showed a buy indication after the company announced that Sony Music Entertainment, a Sony Group company, had entered into a share transfer agreement on the same day to acquire 12,006,500 of its common shares through an off-auction purchase. The acquisition represents 22.93% of the total number of shares issued.
In connection with this, SME and GungHo intend to enter into a capital and business alliance agreement. The companies said they aim to enhance corporate value by combining their expertise and know-how in the entertainment sector.
The alliance is currently expected to cover consideration of the joint development and operation of GungHo games, promotion of collaboration projects, and consideration of new game projects making use of IP held by the SME Group. The details will be finalized through further discussions.