Studio SGN from Los Angeles, the developer of games such as Cookie Jam, Panda Pop and Panda Jam, received $ 130 million from the Korean company Netmarble Games for development.
By investing this amount in SGN, the Korean publisher became the largest shareholder of the studio. However, the exact percentage transferred to him is unknown, as is the estimated total cost of SGN,” Re\Code writes.
SGN’s revenues by the end of this year may amount to $ 280 million, the New York Times notes. As Chris DeWolfe, CEO and co-founder of the studio, told the publication, SGN’s revenue grew by 300% per year for two years in a row.
SGN plans to spend the money received from Netmarble on acquiring game studios and accelerating organic growth, writes The Wrap. According to Variety, the latter means, among other things, spending on television and online marketing.
The choice of Netmarble as an investor is not accidental. The company’s revenues amounted to $580 million last year alone. And, according to the New York Times, it will reach the $1 billion mark this year.
Another important reason for choosing Netmarble as an investor was that SGN plans to expand into Asian markets. Considering that Netmarble is responsible for 35% of the Korean mobile games market, the Korean publisher is an excellent partner for SGN.
Total downloads of SGN games currently amount to more than 500 million, which, according to Fortune, make the studio the second largest developer of casual games in the world after King.