GMO Internet, Inc. completed the acquisition of remaining 1.9% stake in GMO Gamepot Inc. from GMO Media Inc..
December 31, 2017
Share
GMO Internet, Inc. (TSE:9449) agreed to acquire remaining 1.9% stake in GMO Gamepot Inc. from GMO Media Inc. (TSE:6180) for ¥5.6 million on October 23, 2017. As per the terms of the transaction, one GMO Gamepot share will be exchanged for 32 GMO Internet shares. During the merger, a total of 3,520 shares of GMO Internet common stock will be allotted to the shareholders of GMO Gamepot. However, 5,693 GMO Gamepot shares that GMO Internet holds will not be exchanged for GMO Internet shares. No new GMO Internet shares will be issued, as GMO Internet shares will be granted to shareholders of GMO Gamepot by using shares of GMO Internet treasury stock held by GMO Internet. In a related transaction, GMO Internet, Inc. will acquire remaining stake in GMO Game Center, Inc. After closing, GMO Gamepot Inc. and GMO Game Center, Inc along with GMO Game Center, Inc.'s wholly owned subsidiary Syncloud, Inc will merge with GMO Internet, Inc. and eventually cease to exist. GMO Internet, Inc. will be the surviving entity. There will be no change in GMO Internet, Inc.'s name, address, executive roles, business operations or capital as a result of the merger.
GMO Gamepot Inc. reported net liabilities of ¥340 million, total assets of ¥425 million, net sales of ¥939 million, operating loss of ¥142 million and ordinary loss of ¥152 million for the year ended December 31, 2016. The transaction does not require shareholder approval. The merger has limited impact on the consolidated earnings as the transaction is an absorption merger and the target companies are consolidated subsidiaries. The transaction is expected to close on December 1, 2017.
GMO Internet, Inc. (TSE:9449) completed the acquisition of remaining 1.9% stake in GMO Gamepot Inc. from GMO Media Inc. (TSE:6180) during December 2017.
GMO Media, Inc. is a Japan-based company mainly engaged in the provision of media business and related services. The Company operates in two business segments. The Media business segment is composed of two service groups of EC media and social media. The Other media support business segment includes advertisement syndicate and AffiTown service, mainly engaged in utilizing the know-how and systems in the media business to support the monetization of external media.