South Korean game publisher Krafton has acquired ADK, a prominent Japanese advertising and animation group, for 75 billion yen (US$517 million).

The deal, announced in a regulatory filing on June 24, 2025, allows Krafton to diversify its intellectual property (IP) portfolio beyond gaming.

ADK is one of Japan’s top three advertising firms. It has produced over 300 anime titles, including notable series such as Doraemon, Yu-Gi-Oh!, and Crayon Shin-chan.

The company generates an annual transaction volume of around 348 billion yen. This acquisition marks the first instance of a Korean company owning a major Japanese anime studio.

It represents a strategic shift for Krafton, which is known for its hit game PlayerUnknown’s Battlegrounds (PUBG). The company seeks to become a cross-media content creator in gaming, animation, and storytelling.

The acquisition aligns with Krafton’s broader strategy to strengthen its presence in Asia, including investments in studios in India and Southeast Asia.

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🔗 Source: The Korea Economic Daily

🧠 Food for thought

1️⃣ Gaming companies pivoting from products to IP ecosystems

Krafton’s acquisition of ADK reflects a trend of gaming companies evolving beyond game development toward becoming full entertainment conglomerates.

This shift mirrors strategic acquisitions across Asia, like Netmarble’s $800 million purchase of Kabam’s assets, which focused on acquiring Marvel Contest of Champions IP rather than technology alone 1.

The gaming industry, valued at over $200 billion annually, increasingly recognizes that owning established IP portfolios provides more sustainable revenue than relying on individual game titles 2.

With 3.4 billion players globally spending approximately 11.8 hours weekly on gaming, these companies are strategically positioning to capture audience attention across multiple entertainment formats 34.

Krafton’s move specifically addresses its dependency on PUBG by diversifying into anime production, where franchises like Doraemon and Crayon Shin-chan have demonstrated decades-long commercial staying power through merchandising, television, and licensing.

2️⃣ Asia-Pacific emerging as the center of media convergence

The Krafton-ADK deal positions the combined entity to capitalize on the rapid growth projected in Asia-Pacific’s digital entertainment market.

The region is expected to expand from 4.5 billion screens today to 5.5 billion within five years, creating significant opportunities for cross-media content distribution 5.

This acquisition aligns with broader regional trends where gaming, animation, and social media are increasingly converging, particularly among Gen Z consumers who move fluidly between these previously separate entertainment categories 6.

Successful examples of this convergence include Riot Games’ K/DA campaign, which transformed game characters into virtual K-pop stars, showcasing how cross-industry collaborations can increase brand engagement and revenue opportunities 7.

By controlling both gaming and animation studios, Krafton can now develop integrated storytelling experiences that cross traditional media boundaries, serving the region’s tech-savvy audiences who increasingly consume content across multiple platforms simultaneously.

3️⃣ Korean cultural industries expanding regional influence through strategic acquisitions

Krafton’s acquisition represents a significant milestone in Korea’s cultural industries expansion, marking the first time a Korean company has taken control of a major Japanese anime studio.

This follows South Korea’s remarkable growth in cultural exports, with games accounting for more than half of Korea’s $16.2 billion in cultural content exports in 2023, as noted in the original article.

The acquisition gives Korea access to Japan’s globally recognized animation expertise while providing ADK—which has struggled to scale in the streaming era despite its iconic properties—access to Krafton’s digital distribution capabilities and global marketing infrastructure.

This cross-border integration creates a powerful content pipeline connecting Korea’s technological prowess in gaming with Japan’s storytelling heritage in animation, potentially reshaping Asia’s entertainment landscape.

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