Sony Music Acquires 22.9% Stake in GungHo Online Entertainment for ¥28.6 Billion

Sony Music Entertainment Japan is set to become the largest shareholder of GungHo Online Entertainment by acquiring a 22.9% stake in the company for approximately 28.6 billion yen.

The acquisition, which was announced on August 28, will see Sony Music acquire all 12,006,500 common shares held by its existing largest shareholder, SON Financial LLC, at 2,385 yen per share.

The transaction is subject to regulatory approval and is expected to be completed by December 30. Once the deal is finalized, Sony Music will hold 22.93% of GungHo's outstanding shares, corresponding to 23.29% of voting rights.

GungHo will maintain its management independence as a listed company following the transaction, and Sony Music has agreed to respect this independence for as long as GungHo remains a listed company.