Myspace founder Chris DeWolfe said he had one main reason that his mobile gaming company, SGN, took $130 million in new investment from Korea’s Netmarble Games.
Playing the Funding Game -- SGN Gets $130 Million From Korea’s Netmarble
It’s a global mobile market now.
“If you are in gaming today, you need to think about things in a global way,” he said in an interview. “I don’t want to be a mid-tier player, so you have to make a bold move.”
DeWolfe gave no valuation for SGN, founded four years ago, nor would he say what size stake — except for becoming the largest sharegolder — Netmarble gained for its giant pile of money. He added that SGN would operate separately from its new funder.
But he said SGN was on track to garner just under $300 million in revenue this year. It currently has about 200 employees in Los Angeles, as well as San Francisco, Palo Alto, San Diego and Buenos Aires.
It previously raised a total of $28 million from DeWolfe himself and others, as well as Austin Ventures. DeWolfe said he talked to a number of gaming companies, as well as private equity investors, but thought a strategic investment from an Asian company was critical.
“Having a partner in Asia is key in this fast-changing, global market,” he said.
DeWolfe said he would use the new funding for three key areas: Acquisition of smaller gaming companies, office expansion and more television and online advertising to attract a bigger audience.
As part of the deal, Netmarble will use SGN’s distribution in the U.S. to expand its own offerings. It makes a number of games, including Marvel Super Fight. Netmarble has 2,500 employees worldwide.
Both Netmarble and SGN operate in the free-to-play market, by pulling in users and then selling in-app goods and upgrades. There is some consideration of adding advertising to the mix, but that is still in the nascent stages.
This article originally appeared on Recode.net.
