Kingnet's Jin Peng Drives WeMade Acquisition with 3.6x Market Bid
Key takeaways
- Kingnet acquired 39.33% of WeMade for approximately 920 billion won.
- Jin Peng increased Kingnet's stake through strategic market purchases.
- 'Lamwoljeongi' revolutionized traditional class systems in gaming.
- Kingnet aims to finalize the WeMade acquisition amidst market volatility.
Kingnet's acquisition of a 39.33% stake in WeMade for approximately 920 billion won, 3.6 times the market price, highlights the strategic maneuvering of Kingnet Chairman Jin Peng. In this second part, we delve into Jin's background and the rationale behind this significant acquisition.
Born in 1988, Jin Peng began his career with Zhejiang Shenghe Network, progressing from product manager to CEO. He gained recognition in the Chinese gaming industry with the release of "Lamwoljeongi" in 2016. This game broke the traditional three-class system and introduced a single-class system that allowed players to utilize skills from different roles, enhancing accessibility and fairness in PvP combat. The rapid attack speed and removal of loading screens created a more engaging gameplay experience.
Jin's strategic focus on reinforcing successful IPs has proven effective, as evidenced by Kingnet's acquisition of a 51% stake in Zhejiang Shenghe in 2017, which transitioned to a wholly-owned subsidiary by 2023. His approach contrasts with the industry's trend of creating new IPs, as he capitalizes on established successes. Jin has also launched the "996 Engine" and the "996 Game Box" to streamline game development and consolidate existing games.
The timeline of Jin's rise illustrates a pattern of opportunistic acquisition during crises. After Kingnet's founder Wang Wei was arrested in 2019, Jin seized the moment to secure control, gradually increasing his stake through market purchases and court auctions. Following a similar path, he is now targeting WeMade, capitalizing on the company's vulnerability to establish dominance in the market.
Why it matters
As Kingnet prepares to finalize the WeMade acquisition, the implications for both companies are significant. Jin's history of leveraging established IPs and his aggressive acquisition strategy may reshape the competitive landscape in the mobile gaming sector, emphasizing the importance of timing and strategic foresight in corporate maneuvers.
Original source
Google News: ThisIsGame
