FTC to investigate Nexon for Gemania takeover

FTC to investigate Nexon for Gemania takeover
Seth Tipps

By Seth Tipps

May 22nd 2012 at 10:07PM

Alleged hostile takeover by South Korean firm draws fire from fair trade commission

The fair trade commission announced last week it would investigate an alleged hostile takeover by Nexon of Taiwanese publisher Gamania.

According to the Taipei Times, the South Korean online gaming company holds more than 33 percent of Gamania Shares as of the end of March- ten percent more than Gamania CEO Albert Li.

The Fair Trade Act requires any planned merger with a company holding more than a 25 percent market share in any given field must be reported to authorities.

The commision will ask Nexon to share its definition of the market share of the Taiwanese gaming company, the field in which it views Gamania to lie, and explain its relationship with the publisher.

FTC Chairman Wu Shiow-ming said the commission would "not just take Nexon’s word for it," and would follow judicial procedures in reviewing the case.

Nexon has said it believes Gamania to hold less than a 25 percent market share in the digital content industry, and that it made reports to both Gemania and the Taiwanese government securities agency when aquiring the shares.

The government is currently fact-checking those claims.

Gamania said it objects to any meger, and insists on remaining independent.