Nexon to Become 2nd-Largest Shareholder of ‘Avengers’ Producer

Nexon will invest up to US$500 million in AGBO to become the U.S. film and TV production company’s second-largest shareholder.

Nexon, one of South Korea’s leading game publishers, will become the second-largest shareholder of Hollywood film production company AGBO, an independent film and television production company best known for its work in the Marvel Cinematic Universe, most notably “Avengers: Infinity War” and “Avengers: Endgame.” 

Nexon announced on Jan. 6 that it has decided to invest up to US$500 million (600 billion won) in AGBO, which is owned by the Anthony and Joe Russo brothers, who directed the Marvel movies. Founded in 2017, AGBO’s market value is estimated at US$1.1 billion. Nexon invested US$400 million to secure a 38 percent stake in AGBO. In addition, it plans to invest an additional US$100 million in the first half of 2022.

Nexon has set the goal of becoming a general entertainment company beyond games. To this end, it is expanding its own IP. The possession and utilization of core IPs will be directly linked to the generation of profits in the newly born metaverse market, so game companies are not only ramping up their own IP but expanding their business scope to movies and TVs. Nexon is fostering its metaverse business. It has made a foray into the special video studio business by recently joining hands with YG Entertainment and Naver.

Nexon is also speeding up its overseas expansion, centering on Hollywood. Its strategy is to catch two birds with one stone — extending the life of its IP and expanding its business to non-game sectors. It is similar to the Disney model, which has expanded its business to cartoons, movies, and games based on Marvel Universe.