As the gaming industry experiences increased attention from multiple entertainment giants, Webtoon Entertainment Inc. is also tapping into the sector with a $100 million cash investment.
The El Segundo-based comics platform announced Monday a deal that will land it a 60% majority stake in South Korea-based gaming developer RI Games Holdings Inc., which operates game development studios GrayGames and Offbeat. Known for providing vertical viewing formats that gained more than 155 million readers per month with over 27 million creators, the deal would give the platform a direct pipeline to channel hit comics into games over the next four years.
The company also announced specific upcoming projects, including popular series “Overgeared,” “Doom Breaker” and “Omniscient Reader.” Each has generated more than 500 million views across the globe. The intellectual property expansion comes in a package – beyond games, they would also be adapted into anime. The first game, based on “Overgeared,” would launch with an anime as soon as October this year.
“Webtoon is where global fandoms begin, and with this investment we’re taking a more direct role in growing stories into global franchises,” Junkoo Kim, founder and chief executive of Webtoon, said in a statement.
Recent moves
Since relocating to Los Angeles from South Korea in 2020, Webtoon has tapped into an extensive network in the local entertainment scene. With leading entertainment companies expanding their intellectual property offerings across formats, the comics conglomerate is seeing a strong stream of collaborations.
The company inked a deal with The Walt Disney Co. last year to develop a platform for current and past comic runs across the latter’s portfolio, including Marvel, Star Wars and 20th Century Studios. Paramount Skydance Corp., in addition, also launched with Webtoon a pair of Star Trek comics online in May.
The publicly traded company showed steady growth. According to its latest quarterly report, it generated $338.5 million in total reported revenue – or $366.4 million on a constant currency basis, representing 5.2% in year-over-year growth. It attributed the boost to its three revenue pillars: paid content, advertising and IP adaptations.
“This quarter, we introduced a new strategic direction that we believe will power our flywheel into the future: a series of AI-powered initiatives that strengthen and expand our core On-Platform business,” according to Webtoon’s second quarter shareholder letter, published on Monday. “At the same time, we’re also scaling our Off-Platform IP adaptation business – targeted at creating greater franchise value and bringing more fans back to our global platform.”
