Kakao Games to own largest 51.95% stake in Odin: Valhalla Rising developer Lionheart Studio

Kakao Games Corp. will command controlling stake of nearly 52 percent in Lionheart Studio Corp., South Korean game developer behind the blockbuster mobile game “Odin: Valhalla Rising” by taking over additional 30.37 percent stake.

Kakao Games, video game publisher affiliate of Korea’s top chat app operator Kakao Corp., announced Monday that its subsidiary Kakao Games Europe B.V. signed a deal to take over 30.37 percent stake (225,260 shares) in Lionheart Studio. The company will make an advance payment of 450 billion won ($382.1 million won), according to its public disclosures filed on Monday. The actual acquisition amount will be finalized after Lionheart Studio’s business performance through June 30, 2022 comes out.

The upfront payment will be made on Nov. 23, 2021.

Kakao Games Europe is financing the acquisition by newly issuing 1 million common shares to its parent Kakao Games, the full owner of the European unit.

Upon completing the deal, Kakao Games will become the largest shareholder of Lionheart Studio with a total of 51.59 percent stake.

“Odin: Valhalla Rising”

Kakao Games began its partnership with Lionheart Studio in August 2018 and made a strategic investment in May last year. Kakao Games aims to facilitate Lionheart Studio’s stronger international growth through its additional stake investment.

Established in 2018, Lionheart Studio is best known for Odin: Valhalla Rising, a blockbuster open world massively multiplayer online role-playing game (MMORPG). The game was released in Korea June this year via partnership with Kakao Games. It has ranked as the top grossing mobile game for 17 weeks in a row at Google and Apple app stores in Korea.

On Monday, Kakao Games shares gained 10.15 percent to close at 87,900 won.

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