A Korean gaming giant, Netmarble claims to buy Hong Kong-based social casino game company SpinX Games.
According to Forbes report, the deal is about $2.19 billion. This will enable the South Korean gaming giant’s to expand its business outside its home market as the interest in gaming industry surges.
The Seoul-based firm said,
"The deal will let the company continue its global expansion by adding a new genre of games to the current extensive roster."
In addition, Sean Su, an independent technology consultant in Taiwan said, “Netmarble is already a very large company.” Besides, he said that the reason he thinks they would buy SpinX is gambling in Asia is a big market, not just Hong Kong. Also, he added that it makes sense they want to buy SpinX because it’s a great revenue maker. SpinX is founded in 2014. It includes games like Cash Frenzy, Lotsa Slots and Jackpot World. Regarding this, Netmarble CEO Lee Seung-won said, “The social casino genre shows continued global growth, and we are very excited to execute a share purchase agreement with SpinX Games, one of the leading companies in the genre.”
Even more, Chris Marshall, associate vice president for IDC Asia Pacific said that SpinX is growing quickly. So, "Netmarble bought the company as a way to expand beyond the competitive Korean home market," Marshall added. Furthermore, he said that NetMarble faces a huge competition in South Korea, as the country dominates the mobile gaming industry in the Asia Pacific region. Also, Marshall thinks NetMarble has to strengthen its global presence and diversify its capabilities to stay competitive. “The acquisition of SpinX is one way of doing this. This acquisition allows Netmarble to not only widen its offerings into different genres, but also allows them to expand their global reach," he said. According to market experts, the global gaming market is expected to grow from $150 to $250 billion by 2025.