Wemade Founder to Sell 39.33% Stake to Alibaba-Linked NeoPulse for $664 Million

Wemade to Be Sold to Alibaba-Linked Chinese Capital

Founder Park Kwan-ho to Sell Entire Stake for $664 Million

Park Kwan-ho, founder of Wemade Co. and a first-generation South Korean game developer, will sell his entire stake in the company for 920 billion won ($664 million). The buyer is NeoPulse, an investment platform tied to China’s gaming and technology ecosystem and described in the market as an Alibaba-linked investment vehicle. Once the deal closes, Wemade will end its founder-controlled structure and shift to a new controlling shareholder with Chinese business networks.

Wemade said June 30 that it signed a share purchase agreement for the sale of all shares held by Park. He owns 13,350,738 shares, representing a 39.33% stake. Based on the total transaction value of 920 billion won ($664 million), the sale price is about 68,910 won per share. The valuation reflects a control premium tied to the earnings power of Wemade’s flagship intellectual property, The Legend of Mir, in China, as well as potential for artificial intelligence-based game development.

NeoPulse is an investment platform backed by Hong Kong capital. It has been cited as an investment channel linked to Alibaba and major Chinese game companies. It also participated in a secondary share transaction involving Wemade last year.

Park Sells Entire Stake to Chinese Capital at More Than Triple Market Price

Park’s future role after the sale has not been disclosed. A Wemade official said June 30 that, because the transaction involves a change in the largest shareholder, the possibility of changes to the company’s management structure remains open. Retirement is also possible.

The transaction goes beyond a simple financial investment. The founder is transferring his entire holding, and an investment platform connected to China’s gaming and technology ecosystem will become the new largest shareholder. After the deal closes, Wemade will remain a listed South Korean company. But the founder-led structure that has defined the company since its 2000 founding will come to an end.

Exit of a First-Generation Game Developer

Park is widely regarded as one of South Korea’s first-generation game developers. He led development of The Legend of Mir in the 1990s. He founded Wemade in 2000 and established The Legend of Mir 2 in the Chinese market. The two titles became long-running revenue generators in China under the Mir intellectual property franchise. They helped Wemade grow into one of the five largest game companies by market value on South Korea’s main stock market.

The $664 million price for Park’s 13,350,738 shares, or 39.33% of the company, also reflects the Mir franchise’s earnings power in China and room for further expansion. The sale price works out to about 68,910 won a share, more than three times the June 30 closing price of 19,330 won.

NeoPulse, the buyer, is an investment platform backed by Hong Kong capital. It also appeared in a secondary share transaction involving Wemade last year, signaling interest in South Korean game companies. In the investment banking industry, it is regarded as an investment channel linked to Alibaba and major Chinese gaming networks.

Chinese Capital Eyes Profitable Intellectual Property

Chinese capital is expected to revamp the Mir franchise. Wemade has continued licensing operations in China through its subsidiary ChuanQi IP. But the company has faced repeated disputes in the Chinese market over intellectual property rights and revenue sharing. If NeoPulse uses its network of Chinese game companies, publishers and information technology firms, local distribution, new game development and licensing tied to the Mir franchise could regain momentum. That would combine a proven intellectual property franchise with local capital and distribution channels in China.

Still, the deal does not appear to have been driven by the Mir franchise alone. In China’s game market, licensing restrictions tied to publication approval numbers, known as banhao, and changing player preferences have lowered the odds of success for new blockbuster titles. That has increased the importance of expanding proven intellectual property through sequels, spinoffs, mobile games and licensing.

Wemade is one of the few companies with a well-known franchise in China, expertise in massively multiplayer online role-playing game development and global service experience. Adding AI could reduce reliance on development headcount while automating graphics production, digital human creation and live operations, accelerating intellectual property reuse. Market participants say NeoPulse may have viewed Wemade as an AI game production base that could be combined with Chinese networks.

Ahn Jung-hoon, Korea Economic Daily reporter ajh6321@hankyung.com