Wemade Max has been pointed out as an M&A platform in Wemade Group. As it was designated as a management item due to continued deficits, Wemade gave it a new M&A platform status the year before last. Wemade Max aims to recover its performance by diversifying its lineup by acquiring internal and external developers.

To that end, it also secured live ammunition last year. Following the paid-in capital increase, Wemade Max’s cash reserves are currently the highest in nearly five years due to the issuance of convertible preferred stocks. According to Jang Hyun-guk, CEO of Wemade, there is a possibility that mergers and acquisitions of external developers will take place within this year.

◇ Only two listed companies, Max… Strategies for diversifying the line-up to developers’ M&As

Wemade Max (formerly Joymax) was Wemade’s only listed subsidiary until last year. In 2010, Wemade joined as a subsidiary when it acquired the largest shareholder’s stake and management rights. At that time, synergy with Wemade was expected in that it had more than 20 million user pools and overseas service infrastructure around the infrastructure.

However, it fell into a crisis due to the sluggish performance of existing games and the failure of new films. It has been designated as a management item in 2020 due to pre-tax losses exceeding 50% of its equity capital for two consecutive years since 2018. However, it broke away from management stocks in March this year as it turned into a surplus with operating profit of 290 million won in 2021.

Wemade has given Wemade Max a new status as an M&A platform. It is a method of merging developers in the group or acquiring external blue-chip developers centered on Wemade Max. It is a strategy to stabilize fluctuating sales by diversifying service game lineup.