Krafton Inc., sitting on more than 3 trillion won in cash reserves, is aggressively pursuing mergers and acquisitions worth up to trillions of won across both gaming and non-gaming sectors, according to founder and chairman Chang Byung-gyu.
“Now is a golden age for those who have cash,” Chang told the Seoul Economic Daily, highlighting that the company has barely tapped the funds raised during its 2021 initial public offering. The gaming giant behind “PUBG: Battlegrounds” is targeting investments ranging from 100 billion won ($69.45 million) to potentially trillion-won deals as part of its business diversification strategy.
Chang revealed that Krafton contacted approximately 400 game studios for investment opportunities last year alone, reflecting the company’s belief that only about 10% of investments ultimately succeed. This approach aligns with Krafton’s recent moves, including acquiring a controlling stake in Indian gaming studio Nautilus Mobile for $14 million and signing a licensing agreement with Pocketpair for Palworld’s intellectual property.
The company, currently valued at over $10 billion, has also outlined its 2025 business strategy with CEO Kim Chang-han stating they are “fully committed to securing a new ‘Big Franchise IP’ that will build on the success of PUBG: BATTLEGROUNDS.” Chang echoed this sentiment, emphasizing his goal to double Krafton’s value within five years by developing either “one more mega IP like Battlegrounds or two to three globally competitive IPs.”
While continuing to monetize its flagship PUBG franchise, which remains the company’s primary revenue source, Krafton is also exploring artificial intelligence technology. Chang indicated the company is “moving toward a more ambitious stance” on AI, though he noted individual companies face limitations in investment scale without government support.
