Softbank still on acquisition trail

Softbank still on acquisition trail

Dylan Bushell-Embling  |   October 17, 2013
telecomasia.net
Despite spending heavily on its US acquisition, Japan's Softbank is still pursuing new acquisitions, buying control of a mobile game maker for $1.5 billion and confirming it's in talks to potentially buy a handset distributor.
 
Softbank has announced that it will invest $1.5 billion in Finland's Supercell in exchange for a 51% stake in the mobile game company.
 
The Japanese operator plans to make the investment through a special purpose company jointly owned by Softbank and its game subsidiary GungHo Online Entertainment.
 
Supercell is the creator of Clash of Clans and Hay Day, two popular games on the Apple App Store.
 
Frost & Sullivan industry principal for APAC ICT Marc Einstein said the planned acquisition will be an equally positive development for both SoftBank and Supercell. The deal has the potential to create a new mobile game market leader.
 
“The global game industry is quite divided as Japanese developers tend to be dominant in the domestic market and weak outside of Japan while non-Japanese developers are weak in Japan and strong elsewhere,” he said.
 
“This started to change when Supercell and GungHo started cross promoting each other’s products in mid-2013, but now for the first time we have a company that is extremely popular in Western markets coupled with another company that is extremely popular in Japan.”
 
Einstein said Softbank's diversification should serve as a wakeup call for operators worldwide to invest in new business areas in the face of the projected decline in mobile service revenues
 
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