Webtoon Entertainment Inc (WBTN) News & EventsWBTNNews & EventsWebtoon Entertainment Inc

WEBTOON Invests in 60% Stake of RI Games Holdings

WEBTOON Entertainment announced it has entered into a definitive agreement to make a strategic investment in RI Games Holdings Inc. "The investment gives WEBTOON a dedicated pipeline to develop games from hit webcomics with established, built-in global fandoms. Upon closing, WEBTOON Entertainment will hold a 60% majority stake in RI Games Holdings. Together, WEBTOON and RI Games Holdings plan to develop and launch multiple games over the next four years, based on proven intellectual property with an established global fan base. RI Games Holdings operates through two game development studios, GrayGames and Offbeat. The slate includes games based on the hit series Overgeared (1.3B global views), Doom Breaker (590M global views), and WEBTOON sensation Omniscient Reader (aka ORV, 3.05B global views).1 Each title is part of a broader franchise strategy, with planned anime adaptations helping extend these stories and engage wider audiences: from webcomic to animation and game."

Company Reports Q2 Revenue of $338.47M

Reports Q2 revenue $338.47M, consensus $339.46M. Junkoo Kim, Founder and CEO, said, "We delivered another quarter of solid financial performance, with revenue of $338.5 million, in line with our expectations, and an Adjusted EBITDA of $5.5 million, exceeding the high-end of our previous guidance range."

Webtoon Invests in 60% Stake of RI Games Holdings

Webtoon Entertainment announced it has entered into a definitive agreement to make a strategic investment in RI Games Holdings Inc. The investment gives Webtoon a dedicated pipeline to develop games from hit webcomics with established, built-in global fandoms. Upon closing, Webtoon Entertainment will hold a 60% majority stake in RI Games Holdings. Together, Webtoon and RI Games Holdings plan to develop and launch multiple games over the next four years, based on proven intellectual property (IP) with an established global fan base. RI Games Holdings operates through two game development studios, GrayGames and Offbeat. The slate includes games based on the hit series Overgeared, Doom Breaker, and WEBTOON sensation Omniscient Reader. "WEBTOON is where global fandoms begin, and with this investment we're taking a more direct role in growing stories into global franchises," said Junkoo Kim, Founder & CEO of Webtoon Entertainment. "Games are one of the most immersive forms of fandom, and building them from stories fans already love is a powerful way to reach new audiences everywhere. This strengthens our track record of turning original stories into global franchises across animation, television, film, publishing, and now games." Webtoon Entertainment has agreed to acquire a 60% stake in RI Games Holdings for an aggregate purchase price of approximately $100M, funded with cash on hand. The acquisition will occur in two installments, the first at an initial closing shortly following signing, and the second at a subsequent closing, in each case subject to certain closing conditions. The agreement also includes performance-based provisions for the remaining stake. If certain milestones are met, RI Games Holdings' selling shareholder will have the right to sell their remaining 40% stake to Webtoon on pre-agreed terms, payable in a combination of cash and shares of Webtoon common stock. If those milestones are not met, Webtoon will have the right to sell back a portion of its stake to the selling shareholder.