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SoftBank, GungHo purchase majority stake in Supercell for $1.5B
SoftBank, GungHo purchase majority stake in Supercell for $1.5B
October 15, 2013 | By Mike Rose

October 15, 2013 | By Mike Rose
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Mobile game giants Supercell and GungHo Online Entertainment teamed up earlier this year with large-scale cross-promotions in their games. Clearly the move struck a chord with both companies, as GungGo parent Softbank has now purchased a 51 percent stake in Supercell.

Softbank and GungHo have made a strategic investment of $1.5 billion in the Clash of Clans behemoth, and although Softbank is now the majority shareholder in the Finnish company, Supercell CEO Ilkka Paananen was keen to stress that "we are still in full control of our future and will continue to operate independently."

In a memo provided to Gamasutra, Paananen explained that his goal is to take Supercell to a global scale, and this partnership with Softbank will allow him to expand more rapidly in the East. Of course, Supercell has already been doing this on its own, launching Clash of Clans in Japan earlier this year.

"Although our aspirations are global, our roots and future are very much in Finland," Paananen said. "Our operations remain in Finland, our management team remains in Finland and in San Francisco, and we continue to pay taxes in Finland. I think more and more people in this country are realizing that there is life after Nokia!"

As part of the investment, GungHo has put in 20 percent of the total amount. A spokesperson for Supercell told Gamasutra that a new company has been formed for the transaction between SoftBank and GungHo, and this new entity now controls the 51 percent stake in Supercell. More details regarding this new company will be released soon.


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Comments


Ramin Shokrizade
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Given that both of these companies seem to be so far out of compliance with EU regulations and proposed enforcement actions, and that the ICPEN might jump on board, this seems like a lot of optimism to be heaped on this company doing as well or better in the future.

Wes Jurica
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Can you explain a bit more? Is this in regards to taking advantage of players through IAPs?

Ramin Shokrizade
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Wes, this article from a couple weeks ago here on Gamasutra gives some good information:

http://www.gamasutra.com/blogs/EthanLevy/20130927/201182/Why_the_
OFTs_8_principles_for_ingame_purchases_are_great_for_game_develop
ers.php

I will have a more comprehensive report on the ICPEN summit once I get the OK from regulators to publish.

Fredrik Liliegren
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Can anyone confirm if this was an INVESTMENT of $1.5B (aka new shares, cash available in the bank for more development and marketing) or that they simply bought existing shares and thus only rewarded existing shareholders with gobs of cash?


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