Krafton Acquires ADK Holdings for $518M to Expand PUBG
This strategic acquisition is expected to create new opportunities for Krafton in the global content business, leveraging ADK's expertise in animation and digital marketing to expand its gaming IPs and reduce its dependence on a single game title.
Krafton, the South Korean publisher of PUBG: Battlegrounds, has acquired Japanese advertising agency ADK Holdings for 75 billion yen ($518 million) to combine ADK's anime expertise with Krafton's gaming IP and expand its reach in the entertainment industry.
The acquisition aims to leverage ADK's expertise in digital marketing and animation production to expand Krafton's gaming IPs into animation. ADK has worked on over 300 animation projects, including popular titles such as Crayon Shin-chan and Doraemon. This partnership is expected to create new opportunities in the global content business by discovering new intersections between games and animation.
Krafton's CEO views ADK as a strategic partner that can help the company diversify its revenue stream beyond PUBG. This move comes after the release of Krafton's life-simulation game inZOI, which saw a significant drop in concurrent players. The acquisition is part of Krafton's strategy to expand its presence in the entertainment industry and reduce its dependence on a single game title.
The deal marks a significant milestone in Krafton's efforts to expand its reach in the global entertainment industry. With ADK's expertise in animation and digital marketing, Krafton is well-positioned to create new and engaging content for its fans, while also exploring new revenue streams and business opportunities.