Home   >   News

Love thy neighbour: Korean giant Gamevil acquires Com2us

Looking to expand globally
Love thy neighbour: Korean giant Gamevil acquires Com2us

Gamevil has announced it's to acquire fellow Korean publisher and developer Com2us in a deal commentators claim represents a major move of consolidation in the region.

In a statement detailing the move, Gamevil claimed it agreed to purchase shares and control from Com2us majority shareholders on 3 October.

"This agreement is especially meaningful," detailed Gamevil in its release, "as both companies are known as one of the earliest and leading mobile gaming companies in the world based out of Korea, which is known for its specialties in development and operation capabilities." 

Looking westward?

Though the target comes out of the blue, Gamevil's ambitions to expand are well known, with the company having unveiled a $130 million warchest for "aggressive acquisitions", investments, and deal singings, back in June.

Gamevil then announced a raft of third-party publishing deals, and made its first companion investment in Korean start-up Relax Games.

For Com2us, on the other hand, the acquisition comes towards the end of tempestuous 2013.

After posting a record quarter with Q1 sales up 121 percent, Com2us saw its Q2 sales drop 8 percent from where it was in 2012.

Referencing the slump in the second quarter, Com2us noted that Korean sales declined as its new games didn't perform as well as expected.

Chit chat

The elephant in the room for both of these veteran publishers is the competition posed by the Korea-based social messaging app KakaoTalk.

Though not strictly a publisher, the chat channel is experiencing exponential growth and soaring revenue as the Korean mobile gaming market looks to embrace the super-casual.

The acquisition of Com2us by Gamevil will combine the two firm's userbases - Gamevil Circle and Com2us Hub - suggests the firm sees its operations outside of Korea as offering the most avenues for future growth.

The firm's statement on the buyout claims both parties will "cooperate on portfolio strategy" as they aim to "increase competitiveness in the global market".