Videogame giant Nintendo Co. and mobile game provider DeNA Co. announced on Tuesday that they agreed to form a business and capital alliance for the joint development and operation of gaming applications for smart devices as well as joint development of a new multi-device membership service targeting the global market.
The announcement came after the two companies held their respective board meetings and signed the agreement.
Both of them will acquire each other's stock by means of a third-party allocation on April 2. Ten per cent of DeNA's issued shares with a total value of ¥22 billion (S$25 million) will be allocated to Nintendo and 1.24 per cent of Nintendo's issued shares with a total value of ¥22 billion will be allocated to DeNA, according to a statement released by Nintendo and DeNA.
The two companies expect two synergy effects. The joint development and operation of game applications for smart devices utilizing Nintendo's intellectual property is intended to make DeNA's mobile game business more global. The two companies are expected to benefit from developing new customers, creating a new multi-device membership service. They will establish a new core system, which is compatible not only with Nintendo's dedicated video game devices but also with a variety of devices such as personal computers, smartphones and tablets.