South Korean gaming giant Krafton Inc. agreed to acquire Japanese advertising and animation group ADK for ¥75 billion ($517 million), marking the PUBG developer’s largest bet on expanding beyond traditional gaming into broader entertainment content.
The deal involves purchasing ADK Holdings’ parent company from private equity firm Bain Capital Japan, which acquired the advertising agency in 2018. ADK ranks among Japan’s three largest comprehensive advertising companies and has participated in over 300 animation productions, including major franchises like Doraemon, Yu-Gi-Oh!, and Gundam.
Krafton expects to combine ADK’s animation planning and production capabilities with its global game development experience to create new value while maintaining both companies’ identities. The acquisition gives Krafton access to ADK’s ¥348 billion annual transaction volume and seven decades of media infrastructure in Japan’s content market.
The move comes as Krafton posted record first-quarter results with revenue reaching ₩874.2 billion ($608 million), driven partly by its new life simulation game inZOI. However, the gaming industry faces increasing pressure to diversify revenue streams as traditional titles mature.
ADK’s deep relationships across Japan’s entertainment ecosystem could provide Krafton with distribution channels and production partnerships, though integrating creative operations across cultures and languages presents execution risks. The transaction reflects broader consolidation in Asia’s entertainment sector as companies seek scale advantages.
