Kingnet invests $298m in consortium to become Wemade's largest shareholder

Kingnet Network, a Chinese game developer, has announced plans to invest $298 million in a consortium that will become Wemade's largest shareholder, marking a significant shift from years of legal conflict between the two companies.

According to a regulatory filing on the Shenzhen Stock Exchange, Kingnet's Hong Kong subsidiary Cypress Technology HK will acquire a 49% stake in Neosphere and inject approximately $298 million through a capital increase. Nexpulse, which currently owns Neosphere, will contribute at least $310.2 million and retain a 51% stake.

Neosphere indirectly controls NeoPulse through Hong Kong-based Shengsong Investment. NeoPulse currently owns 0.92% of Wemade and agreed in June to purchase a further 39.33% stake from chairman Park Kwan-ho for approximately $684 million. The parties will complete the remaining payment and regulatory approval procedures through October 30th.

Kingnet and Wemade previously faced years of legal disputes over royalties tied to The Legend of Mir. The companies resolved these disputes earlier this year across Korea, China and Singapore, paving the way for this partnership. Following completion of the acquisition, the consortium plans to expand Wemade's publishing and core IP licensing opportunities in China and other global markets, transforming the former adversaries into strategic partners.