Japan's Line Yahoo to become largest shareholder of Kakao Games

LY Corp., the Japanese operator of Line and Yahoo! Japan, will become the largest shareholder of Kakao Games through an investment company, investing 300 billion won ($200.4 million) in the game developer to revive its growth momentum. Kakao Games said in its regulatory filings Wednesday that LAAA Investment, an investment company backed by LY Corp., will acquire an undisclosed amount of stake in the company and purchase 240 billion won of new rights and 60 billion won worth of convertible bonds. When the transactions close in May, LAAA Investment will become the largest shareholder in Kakao Games, while its current largest shareholder Kakao will become the second-largest shareholder, the company said. Kakao currently holds a 40.7 percent stake in Kakao Games. The transaction will inject 300 billion won into Kakao Games, and the company plans to use to strengthen its global competitiveness and accelerate efforts to build a mid- to long-term growth foundation. Kakao will also reinvest part of the proceeds from the share sale into the deal, maintaining its partnership with Kakao Games and

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