in Mobile Gaming

Japan ‘s mobile gaming company Gree starts global expansion

Just wanted to share an interesting article with you which I came across in the online version of the Wall Street Journal:

 The Japanese company “Gree” is a leading domestic mobile gaming company and its founder has apparently indicated in a recent interview that “the rise of smartphones around the world has paved the way for his business to go global. He continues by adding that “now is the chance to enter the race at its early stages” and that “the fact that our business is very lucrative in Japan enables us to invest in overseas  acquisitions and other steps to expand abroad“.  The WSJ article points out that mobile gaming is one of the few areas where Japan could lead the world and the country’s two biggest competitors – Gree and DeNA Co – see a major growth opportunity. Both Gree and DeNA operate gaming-oriented social-networking services where videogames allow players to interact with each other. Interestingly, Gree signed a USD 104m million deal to buy OpenFeint in April. OpenFeint is a US bades gaming service for smartphones with 75 million users around the world.

Nothing tremendously new in this article but nevertheless one more proof that many players are out on a shopping spree in the global mobile gaming market. You know that my absolute favourite pick in this sector is the Swedish-listed company G5 Entertainment ( whose share stubbornly keeps trading at a PER of 11x. In my opinion, if the market doesn’t put a reasonable valuation on it soon, somebody else will (i.e. takeover). Profitable growth stories do not go unnoticed forever…

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