Observed Signal · Sep 25, 2026 · M&A - Announced · Source: PocketGamer.biz · Impact: 2/5 · Sentiment: Positive
Kingnet Invests $298M in Consortium Behind Wemade Deal
Chinese game developer Kingnet Network announced plans to invest $298 million in a consortium that will become Wemade's largest shareholder. The consortium, led by Nexpulse through its subsidiary Neosphere, will acquire a 49% stake in Neosphere via Cypress Technology HK, while Nexpulse retains 51% and contributes at least $310.2 million. Neosphere indirectly controls NeoPulse, which owns 0.92% of Wemade and agreed to purchase a further 39.33% stake from chairman Park Kwan-ho for approximately $684 million. This investment resolves years of legal disputes between Kingnet and Wemade over The Legend of Mir royalties, following an agreement earlier this year. The consortium aims to expand Wemade's publishing and IP licensing in China and global markets, with payments and regulatory approvals expected through October 30th.
This news is significant for the gaming industry, involving a major investment and M&A activity that could reshape Wemade's ownership and expand its market reach in China. It is relevant to AdTech/MarTech due to the potential for increased advertising and monetization opportunities within gaming platforms.
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Key Takeaways & Evidence Grounding
- Kingnet Network plans to invest $298 million in a consortium to become Wemade's largest shareholder.
- Kingnet's subsidiary Cypress Technology HK will acquire a 49% stake in Neosphere.
- Nexpulse will retain a 51% stake in Neosphere and contribute at least $310.2 million.
- NeoPulse agreed to purchase a further 39.33% stake in Wemade for approximately $684 million.
- The deal resolves long-standing legal disputes over The Legend of Mir royalties.
Ontology Mapping & Concepts
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Wemade founder sells 39% stake to NeoPulse for $593M
Wemade founder Park Kwan-ho has agreed to sell his entire 39.33% controlling stake in South Korean game developer Wemade to NeoPulse, the Korean subsidiary of Hong Kong-based Shengsong Investment, for about 920 billion won (approximately $593 million). The companies said the transaction will close on October 30; after closing NeoPulse will hold a 40.25% stake in Wemade. NeoPulse cited Wemade’s MMORPG expertise and the strength of its Legend of Mir IP as drivers for the investment. Both companies said they plan to target global markets including China, pursue partnerships with Chinese IT and gaming firms, and place artificial intelligence at the center of future game development and player experiences. Park framed geographic expansion as a necessity for the company’s future growth and emphasized leading industry change via AI.
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Thatgamecompany and NetEase grew Sky's China community
SJ Xue, head of corporate development at Thatgamecompany, describes the company's partnership with NetEase to publish Sky: Children of the Light in China. Drawing on experience from both sides of the deal, Xue says capital and market access get a partnership started but long-term success depends on trust, shared ownership, and day-to-day collaboration across engineering, marketing and live-ops teams. NetEase contributed deep local expertise in live operations, community engagement and cultural marketing while Thatgamecompany retained creative stewardship of Sky. Xue advises studios evaluating cross-border partners to prioritise the people, operational commitment and mutual respect over contract terms alone. The interview was published ahead of Xue’s PGC Summit Shanghai panel on publishing in China.
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