Nexon and NCsoft part ways

    
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After a turbulent partnership, MMO companies Nexon and NCsoft have finally parted ways.

Nexon sold its 15.08% of shares back to NCsoft today, ending the two companies’ intertwined and sometimes hostile relationship. The sale of 3.37 million shares amounted to a whopping $533 million and was managed by Morgan Stanley. NCsoft Chief Executive Kim Taek-jin bought 440,000 of those shares personally, raising his stake in the company to 12%.

Nexon first bought into NCsoft back in 2012, looking to forge a beneficial synergy between the two companies. However, the association quickly turned sour as Nexon began exerting demands on NCsoft that the latter resisted, a move that was followed by NCsoft purchasing Netmarble stock as a plan to resist a hostile takeover from Nexon. Tensions between the companies have been frosty ever since.

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breetoplay
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breetoplay

srmalloy Thank you for posting this. It drives me crazy when this crucial fact — that CoH was supporting two games, one of which was in a very early R&D stage — is conveniently omitted in the midst of people rushing to stomp on CoH.

MagmaFist
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MagmaFist

theblackmage75 And heck, I will take a maintenance mode CoH and gladly pay $15/month for it. Just finish i24 if possible.

MagmaFist
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MagmaFist

theblackmage75 Me too. My wallet is ready, NCSoft.

Jesse Schulkers
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Jesse Schulkers

Good riddance. I want to see how NCSoft manages, not Nexon. Nexons made some good games that I like but I did not see this partnership going anywhere pleasant.

srmalloy
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srmalloy

Ehra curiositytime syberghost devin007 Paragon Studios was losing money, because they had an NCsoft-imposed development project that was sucking down all the profits from CoH and more; in that state, NCsoft could ‘rationally’ shut down Paragon Studios (and with it, CoH) because it was losing money. According to Positron, without the second project, Paragon Studios would be in the black; when CoH went free-to-play with a game store, its income jumped significantly.

That doesn’t explain why NCsoft didn’t just kill the second project that was sucking money for no return. My belief is that NCsoft, as a Korean company, didn’t want CoH because its concept and execution was inherently foreign to the MMORPG as it had evolved in Korea, and it couldn’t be monetized the way Korean MMORPGs have been, with the game store being the primary moneymaker for the game.

srmalloy
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srmalloy

theblackmage75 Hopefully, the resolution of the fight between Nexon and NCsoft will mean that the negotiations for buying the IP and codebase away from NCsoft, which have been stalled for months while NCsoft’s attentions were focused elsewhere (don’t ask for details, there’s an NDA on the negotiations; we know they were stalled, not stopped, but that’s it), can resume.

Jack Pipsam
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Jack Pipsam

devin007 They also wiped people’s old accounts if you didn’t do a migration thing, that’s evil.

quark1020
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quark1020

usagizero A lesser of two evils. That’s really all it is.

syberghost
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syberghost

Ehra curiositytime syberghost devin007 some of those people were the devs on the game.

wjowski
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wjowski

It’s too bad.  I was looking forward to NCSoft being hollowed out for it’s valuables before having it’s lifeless husk tossed aside.