HYBE, the agency behind the globally renowned K-pop band BTS, has recently increased its stake in its gaming division, HYBE IM.
This happened in the Makers Fund-led investment round on Tuesday, where HYBE IM raised over $80 million in funding to bolster its gaming development and publishing capabilities.
According to the Korea JoongAng Daily, HYBE IM issued 76,924 new shares at 1.4 million won (approximately $1,040) each.
Makers Fund acquired the majority of these shares, purchasing 57,692 shares for $60 million, followed by HYBE itself with 12,228 shares for $12.7 million, and IMM Investment with 7,004 shares for $7.3 million.
HYBE, already the majority shareholder of HYBE IM, now owns 71% of the company thanks to this additional investment.
The first payment of $45 million is scheduled for September 6, with the remaining $35 million to be paid by October 31, as stated by HYBE IM.
Aims Towards The Full-Service Game Company
In a press release, Wooyong Chung, President of HYBE IM, expressed ambitious plans for the company’s future:
“Through the investment, HYBE IM will strengthen its competitiveness in the global gaming market and become a holistic games company by diversifying our portfolio in both publishing and developing games.”
With this investment, HYBE IM aims to establish itself as a global full-service game company. As Chung stated:
“With the support of Makers Fund, IMM Investment, and HYBE, we will strive for sustainable growth and innovation, solidifying our position as a full-service game company.”
This means the company plans to go beyond just developing or publishing mobile games, expanding its focus to include a multi-platform presence, genre diversity, intellectual property (IP) management (similar to how HYBE IM leverages BTS’s IP), global operations, technology infrastructure, esports, and community building, among other areas in future.
How Is HYBE IM Positioned in the Gaming Industry Now?
In 2021, HYBE launched its gaming division, HYBE IM, to enter the rapidly growing mobile gaming market.
The initial goal was to capitalize on the popularity of HYBE’s artists, particularly BTS, by developing games centered around them. And they did this with titles like Rhythm Hive and BTS Island: In the SEOM which gained huge popularity among fans and gamers.
But later they broadened their scope beyond BTS by publishing games created by other developers. Notable examples include Oz Re by Macovill and Knight of Veda by Flint.
Moreover, in August 2023, HYBE IM, with HYBE, made a strategic investment of $21.8 million in Aqua Tree, a casual mobile game developer, and a $1.45 million investment in February 2024 in Action Square, the developer of Dungeon Stalkers.
These investments, combined with the development of various in-house games, are accelerating HYBE IM’s ambition to become a global full-service game company, spanning multiple platforms, genres, and regions, not just HYBE’S BTS game maker.
Korean game exports account for over 64% of the country’s cultural exports—three times more than K-pop and K-dramas combined. By tapping into this thriving niche, HYBE aims to expand its entertainment business beyond just music. This strategy not only diversifies HYBE’s revenue streams but also strengthens its global brand presence.
Currently, HYBE employs 790 people, while HYBE IM has a dedicated team of 240 employees.
Recently HYBE reported its Q2 financial reports, where it performed “less than the market expectations” with net profit dropping by 85% from a year earlier.
For more information, visit Korea JoongAng Daily, VentureBeat. And remember to subscribe to Gaming Foodle for more news!
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