Key points leading up to Mynet’s listing on the First Section of the Tokyo Stock Exchange

This is Nakauchi from the technical sales department.

It's a little old, but Mynet, which operates a secondary game business, was listed on the First Section of the Tokyo Stock Exchange, so

After doing some research, I found out something, so I'm going to write about it.

What is secondary business?

DeNA and GREE are also doing secondary business,

I think Mynet is probably the only company that is almost entirely secondary.

To put it simply, secondary business is a business that buys games that are currently in use and takes over the management of them.

The development costs for social games are on the order of hundreds of millions of yen, and some can exceed 1 billion when advertising costs such as commercials are added, but there are many cases where sales do not increase as expected even if you spend that much. This is the current situation.

From a game company's point of view, it would be better to sell if there is a buyer rather than just discontinuing the service, and for secondary businesses like Mynet, initial costs are lower than developing from scratch, and they can expect a certain amount of sales. , mutual interests coincide.

On the other hand, this is a title that game companies have given up on, so it's a business they can't do unless they have a lot of confidence in their management.

By the way, Mynet calls it a "rebuild business."

Main events from Mynet’s listing on Mothers to the change in the first section of the TSE market

Of note is the acquisition of Cruise's gaming business on October 13, 2016.

At this time, sales are rapidly increasing.

This is the 4Q part of 2016.

At this time, we acquired the shares of the newly established corporation C&M Games Co., Ltd. from Cruise and made it a subsidiary, allowing us
to operate 16 major titles other than "Elemental Story."

With the acquisition of C&M Games' shares, we have added 1.02 billion to our total sales of 2.55 billion.

Things have been going well since then.

lastly

In the secondary business, of course you have operational ability, but I think you will need a discerning eye who can discern the potential of a game that still has potential.

Although there are some services that have been closed since they were purchased, Mynet's business, which is still in operation even after most of the games were purchased,
and whose sales are significantly increasing, is truly a rebuilding business.