The gaming company will provide the funding in an attempt to increase its Southeast Asian business as it sells its stake in Supercell to parent company SoftBank.
Japan-based gaming company GungHo Online Entertainment announced plans yesterday to invest about ¥30bn ($289m) in Southeast Asia-based game developers.
The funding will be made available through a new Singapore-based subsidiary, GungHo Online Entertainment Asia Pacific (GAP).
GungHo has signed a cooperation with SoftBank, a telecommunications company that is headquartered in Japan but which has several affiliate companies in Southeast Asia, in order to develop a structure for the new unit. SoftBank is also the majority shareholder in GungHo.
The move came shortly before GungHo revealed that it will also sell its 10% stake in Finland-based mobile game developer Supercell to SoftBank for $344m.
GungHo and SoftBank partnered to buy a 51% share of Supercell in October 2013 for approximately $1.53bn. GungHo.put up $306m of the cash as part of an 80-20 split and has made a $38m profit on the investment.
