November 19, 2014
To Whom it May Concern
Company name
Representative
Contact person
GungHo Online Entertainment, Inc.
Kazuki Morishita, Representative Director & President, CEO
(Securities code：3765)
Kazuya Sakai, Director & CFO, Executive General Manager
of Finance Accounting Division
(TEL：03-6895-1650)
Notice on the Acquisition of Shares of Kamcord Inc.
The Board of Directors of GungHo Online Entertainment, Inc. (the “Company”) approved a
resolution on November 19, 2014 to acquire shares of Kamcord Inc. (“Kamcord”)
1. Purpose of acquisition
The business environment surrounding the Company has been changing rapidly. Along with
the increase in smartphone users in Japan, the smartphone game market is growing not
only in Japan but also overseas. Under this remarkable economic growth, on-line games
have been entertained in the emerging market represented by China and Southeast Asian
countries, and as smartphone users increase, the smartphone game market is also showing
signs of growth.
Kamcord provides a software development kit (“SDK”) which enables the recording and
distribution of game playing movies. By adopting SDK, game users can easily record game
playing movies without having special filming and editing techniques and share the video on
Facebook, Youtube and Twitter. In recent years, smartphone game users have tended to
post such movies online, and by users watching the playing movie , the activation of existing
users are highly expected and it can be a new marketing tool.
By making this capital participation in order to realize the development and expansion of
gaming industry, the GungHo Group aims to promote further development and enlarge the
size of the future gaming industry.
2. Outline of Kamcord Inc.
(1) Company Name
Kamcord Inc.
(2) Principal Office
301 Howard Street, Suite 910, San Francisco, CA 94105
(3) Representatives
Matthew Zitzmann Chief Executive Officer
(4) Main Business
Development of movie distribution sharing system for
smartphone games.
(5) Paid-in Capital
US$ 21,191
(6) Establishment
May 2012
(7) Fiscal year end
December 31
3. Number of Shares to be Purchased
Currently discussing the acquisition of 12% of its shares.
4. Schedule
Approval of board of directors : November 19, 2014
Signing of agreements : End of November 2014 (Plan)
Date for the execution of the share purchase : End of November 2014 (Plan)
5. Outlook
The Company expects that this matter will have only a negligible effect on the consolidated
business forecast for the fiscal year ending December 31, 2014 and will notify if some
events needing to be disclosed occur.
(Reference) Consolidated business forecast for FY2014
(Units: millions of yen)
Operating
Ordinary
Net profit per
Net sales
Net profit
profit
Consolidated
profit
share
business
forecast FY2014 (ending
－
－
－
－
－
163,060
91,228
90,104
54,768
47.56
December 2014)
Consolidated
business
results FY2013 (ending
December 2013)
*The GungHo Group engages in the content business which is highly novel in nature and is
subject to facing sudden, short-term changes in the operating environment. Since this
makes it difficult to calculate proper and rational earnings forecasts, the Company adopts
the policy of providing timely disclosure of financial results and a summary of operations on
a quarterly basis while refraining from disclosing its full-year consolidated earnings forecast.
*The Company conducted a 100-for-1 stock split of its common shares effective January 1,
2014. In conjunction with this stock split, net profit per share above has been calculated on
the assumption that the stock split was conducted at the beginning of the fiscal year ended
December 31, 2013.