Nexon has filed disclosures that include investment amounts in four publicly traded companies: Hasbro, Inc., BANDAI NAMCO Holdings Inc., KONAMI HOLDINGS CORPORATION and SEGA SAMMY HOLDINGS INC. Other investments did not meet the company’s threshold for disclosure.

Up to $1.5 billion was authorized by Nexon’s board in 2020 for investment in entertainment companies that demonstrate the ability to develop and sustain strong globally recognized intellectual property. These are long-term friendly investments with no intention of acquisition or activism. As of the end of 2020, Nexon completed investments totaling ¥92.4 billion ($874 million) which represents 58% of the authorized amount and recorded an unrealized gain of ¥29.5 billion ($279 million3) under other comprehensive income.

“We believe companies with strong, well-managed global IP are often overlooked and undervalued in a market that is narrowly focused on introductions of new IP. These investments reflect our respect for management teams that create and grow global properties over a period of years and decades. We believe that each has potential to capitalize on the secular shift from linear formats to interactive entertainment.”

“These investments represent a good use of our cash in a low-interest environment and we are extremely pleased with the initial results. While leveraging partnerships was not a consideration in our investment decisions, we are pleased with the dialogue that has ensued with some companies.”

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Owen Mahoney, President and CEO of Nexon

Nexon is a global entertainment company with a solid balance sheet, significant cash reserves, strong cash flow and a proven ability to create and sustain global IP for years – even decades. In 2020, the company generated revenues of ¥293.0 billion and operating cash flow of ¥137.6 billion and as of December 31, 2020, has ¥525.7 billion in cash on the balance sheet. In November 2020, Nexon announced a three-year share buyback period with a maximum acquisition amount of ¥100.0 billion.

The Annual Securities Report is available in Japanese here.