![[단독]NCsoft participates in the acquisition of Bithumb…](https://image.zdnet.co.kr/2021/01/08/9e553f63bde2dc0ed745090111ec2cbd.jpg "[단독]NCsoft participates in the acquisition of Bithumb…")
NCsoft, which has only cash assets of 1.6 trillion won, jumped into the acquisition of Bithumb, the largest cryptocurrency exchange in Korea. Over the management rights of Bithumb, it has become a two-fold battle with Nexon, the game industry leader.
According to the blockchain industry on the 8th, NCsoft informed Bithumb last week that it will acquire 65.76% of its stake in Bithumb Holdings for more than 650 billion won.
Bithumb’s side selected KPMG as the organizer of the sale in June of last year and is promoting the sale of its 65.76% stake in Bithumb Holdings. This is the sum of the shares held by DAA (30%), BTHMB (10.70%) and other shareholders (25.06%). Most of them are known to be owned by Lee Jung-hoon, chairman of Bithumb Holdings and Bithumb Korea, and friendly relations. The remaining 34.24% is owned by Bident and was excluded from the sale.
NCsoft is hoping to take over the entire 65.76% stake in Bithumb Holdings. If you own more than half of Bithumb Holdings’ shares, you will have the management rights of Bithumb Holdings, the operating company of Bithumb.
The proposed acquisition amount is known to be over 650 billion won. Considering that Bithumb Holdings’ corporate value is valued at close to 1 trillion won in the market, a higher amount was presented. “The Bithumb side presented an amount that is difficult to reject,” the industry said.
NCsoft’s participation in the acquisition of Bithumb took place while negotiations for the acquisition of Nexon and Bithumb were already underway.
Nexon submitted an acquisition proposal to Bithumb ahead of NCsoft. It is known that the proposed amount is less than 500 billion won. Nexon is known to be holding the negotiations, as Nexon offers a discounted amount over the corporate value of Bithumb Holdings.
Huobi Global also showed interest in the acquisition of Bithumb at the end of last year, but it is an industry message that negotiations itself broke down. The fact that Huobi Global is a Chinese-based exchange is known to be a stumbling block.
Accordingly, the takeover of Bithumb is an atmosphere that flows into the second wave of NCsoft and Nexon. For now, NCsoft’s proposal must be attractive to Bithumb. However, as long as the competition structure is formed, there is a possibility that Nexon will make a new proposal. This time, the head of the game industry has been confronting over the management of the cryptocurrency exchange.
Bithumb’s position is expected to speed up negotiations as it is necessary to close the acquisition transaction before the revised Special Financial Information Act (Special Act) is implemented.
In accordance with the revised Special Special Act, which will take effect in March this year, cryptocurrency exchanges must report to the Financial Information Analysis Institute (FIU) and obtain a license to operate. Existing cryptocurrency exchanges are required to complete the report by September, six months after the enforcement of the law.
Currently, Chairman Lee Jung-hoon and others have been accused of fraud, so they may have difficulty obtaining licenses. Therefore, it is safe to complete the sale before that and acquire the license as the changed major shareholder.
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Regarding the reason why game companies are interested in cryptocurrency exchanges, one industry official said, “Game users are already used to buying and selling items with game money, so it is the best industry to combine digital assets.” If you use it, you can create a more expanded gaming economy.”
He added, “If a cryptocurrency exchange that can exchange digital assets and game services are closely combined, significant synergy can be created.”