Nexon pressures NCsoft as largest shareholder

While Nexon and NCsoft may be competing developers in the MMO space, business has made strange and hostile bedfellows of both.

After purchasing enough shares to become NCsoft’s largest shareholder last year at 15.1%, Nexon is attempting to put pressure on its rival to conform to certain demands. However, tensions are running high as NCsoft is pushing back against those proposals.

Last week, Nexon issued a proposal to NCsoft with an unspecified deadline to allow Nexon to appoint a board member, sell certain non-core assets, disclose wages for unregistered board members, and adopt an electronic voting system for shareholders, among other demands. NCsoft responded to the proposal although the specifics of the response were not revealed.

Nexon also released its fourth quarter 2014 financial report today. While the company celebrated an increase in revenues of 25% year-over-year, it is still operating at a $4.13 million (4.5 billion KRW) net loss for the quarter.

[Source: Nexon press release, Korea Times, Korea Herald]
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social_crime
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social_crime

Here was the answer.

SirMysk
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SirMysk

BryanCo It’s entirely reasonable, but Nexon is a less than popular company in general.  It’s easy to assume that what they’re doing is somehow shady when this is a company that would make you pay to use mouse controls if they could get away with it.

hults2
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hults2

from a business standpoint, Nexon isn’t asking for anything unreasonable. They want to know how much people directly responsible for the business they own stake in are earning, and they want accountability of assets and a more open voting process.

from the standpoint of someone who has been victimized by these companies, frankly, they deserve each other an can go down in flames together for all I care.

jgauthier45
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jgauthier45

Not sure how much this will effect GW2’s development.  But I don’t see it as a good thing.  It boggles my mind how a horrible developer like Nexon could buy enough of NCSoft’s stock to take control like this.  Yet another example of how corporate suits are ruining our pastime…..

unixtimed
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unixtimed

RicharddeLeonIII Lol, so many big corporations have invested in their competitors. It’s very common thing. Even Google partially funds Mozilla Foundation.
So you are saying Nexon is in conflict of interest?  Did you even read that the wife of NCSoft’s CEO is president? His brother is also on very high-ranked position. It’s obvious who is in conflict of interests.

playerxx
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playerxx

*from the other side, a simple city of heroes player smiles*

Crow God
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Crow God

BryanCo It’s because its Nexon and Nexon is the company that is so easy to hate.

BryanCo
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BryanCo

I see a great deal of hating on Nexon over this (usually with the side note that no one really feels sorry for NCSoft.)  But why?  Nexon’s requests are quite reasonable as near as I can tell. 

A seat on the board of directors?  Why should a %15 shareholder NOT deserve that?

Nexon also demanded NCSOFT disclose wages for its unregistered board members,
who receive more than 500 million won (about 450k USD) annually and are affiliated with NCSOFT
CEO Kim Taek-jin.They want to know just how much the CEO’s cronies (including his wife and brother) are getting paid.  FYI, an ‘unregistered director’ is someone (generally an employee) who performs all the functions of director even though technically not one.  In the US (I am not familiar with Korean business law) director compensation must be reported in public filings, so ‘unregistered directors’ and pretty shady to begin with.

The sale of “non-core assets” is hard to judge without knowing the specifics.  But chances are it refers to corporate jets, yachts, and such.

Detton
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Detton

Well this doesn’t sound skeezy as hell does it..

Observer98
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Observer98

A perfect example of why crowdfunding- imperfect as it is- is our last best hope for decent games.