KRAFTON, Inc. (KOSE:A259960) signed a sales and purchase agreement to acquire Unknown Worlds Entertainment Inc. from Perfect World Co., Ltd., Unknown Worlds‘ cofounder and Technical Director Max McGuire and others for $750 million on October 29, 2021. Krafton will pay $500 million for a full stake in Unknown Worlds with the option of offering an additional $250 million in an earn-out provision due in 2026, depending on Unknown Worlds' achievement after merger. Unknown Worlds will function as an independent game development studio wholly owned by KRAFTON and will continue to operate globally with talent seated throughout the world. Unknown Worlds' structure will remain in place to retain its unique creative identity. Unknown Worlds reported $25.8 million in net profit in 2020. Unknown Worlds' current management structure and leadership remains intact. The transaction is subject to government approval. Aream & Co. acted as the exclusive financial advisor to Unknown Worlds, alongside Mark Stevens, Scott Behar, Omar Rifai, Matthew Cantor, Joseph Schenck, Aaron Dunn, Julia Ushakova-Stein, Steve Albertson, Melissa Duffy and Jim Koenig of Fenwick & West, who served as legal advisors. Maggie Flores, Edward Lee, Seth Traxler, Rohit Nafday, David Grenker and Adam Kool of Kirkland & Ellis LLP and Kim & Chang acted as legal advisors to KRAFTON.

KRAFTON, Inc. (KOSE:A259960) completed the acquisition of Unknown Worlds Entertainment Inc. from Perfect World Co., Ltd., Unknown Worlds‘ cofounder and Technical Director Max McGuire and others in 2021.