Sony Music Entertainment Japan and GungHo Online Entertainment form capital alliance

Sony Music Entertainment Japan will acquire a 23.29 percent stake in GungHo Online Entertainment through an off-market bilateral transaction from major shareholder SON Financial. The total offering price is 28,635,502,500 yen (approximately $178.7 million USD), calculated at 2,385 yen per share.

The transaction is expected to close on December 30, 2026, pending necessary regulatory approvals. Upon completion, Sony Music Entertainment Japan will qualify as an affiliated company of GungHo Online Entertainment, and its parent entity, Sony Group Corporation, will also hold this status.

Alongside the equity deal, both parties have entered into a comprehensive capital and business alliance agreement. Under this framework, they plan to explore joint development and operation of smartphone, console, and PC games distributed by GungHo. The partnership will also focus on promoting collaboration initiatives for existing GungHo titles.

Furthermore, the alliance includes plans to explore new game projects, potentially utilizing intellectual property from Sony Music Entertainment (Japan) and its subsidiaries. Despite these changes, GungHo Online Entertainment will maintain its management independence as a publicly listed company on the Tokyo Stock Exchange Prime Market following the deal's closure.