KLab Inc. sold its mobile app subsidiary GlobalGear Co. to digital studio Sun Asterisk for ¥1.1 billion ($7.3 million), marking another step in the struggling gaming company’s efforts to stem three years of consecutive losses.
The Tokyo-listed mobile game developer agreed to transfer all shares in the Fukuoka-based unit effective July 1, according to regulatory filings Wednesday. KLab acquired GlobalGear in 2021 as part of its push into casual gaming, but the subsidiary’s net assets have since declined 56% to ¥389 million ($2.6 million) by December 2024.
The divestiture follows KLab’s announcement last month that it would seek voluntary redundancies from around 100 employees—roughly one-quarter of its 389-person workforce—to improve cash flow and reduce costs. The company has been running at a loss for the past three fiscal years, even as revenue from flagship titles like “Bleach: Brave Souls” showed modest growth.
KLab shares have tumbled to $0.77, giving the company a market capitalization of just $38.2 million. The stock has been pressured by delays to high-profile projects including EA Sports FC Tactical, a collaboration with Electronic Arts that missed its original release window.
Sun Asterisk, the buyer, operates as a digital creative studio with over 2,000 engineers and creators across six cities in four countries. The company trades at $3.46 per share with a market cap of $130 million and reported trailing twelve-month revenue of $89.6 million.
Beyond the asset sale, KLab simultaneously announced a business partnership with Sun Asterisk aimed at accessing the acquirer’s technology resources and development expertise. The companies cited potential synergies in their respective growth strategies, positioning the partnership as a foundation for future collaboration.
KLab expects to book a gain from the share transfer in its third quarter but hasn’t disclosed the amount pending final calculations. The company has been reviewing its business portfolio as it refocuses on core mobile gaming operations following a strategic overhaul.
