Puzzle & Dragons Maker GungHo Reaches $15 Billion Market Cap, Now Worth More Than Nintendo, or more than Mobage operator DeNA, GREE, and Zynga combined

Puzzle & Dragons Maker GungHo Reaches $15 Billion Market Cap, Now Worth More Than Nintendo

May 13, 2013 by Dr. Serkan Toto


I’ll say it again: if there is one mobile game out there right now that people in Japan will remember in 10 years, it’s Puzzle and Dragons. The game, which boasts 13 million registered users in this country (10 percent of the population), has generated US$113 million in sales in April. Since late last year, maker GungHo’s market cap at the Osaka Stock Exchange kept rising and rising – to about $10 billion – to the point that the company is worth more than Mobage operator DeNAGREE, and Zynga combined. And today, GungHo (3765.OS) shares jumped limit-up by 300,000 yen to 1,342,000 yen (up 28.8 percent) in just a few minutes of trading, until the stock was bid-only. As a consequence, the company’s market cap now reached 1.54 trillion yen, which translates to $15.1 billion. With this number, GungHo topped Nintendo’s market cap of US$1.53 trillion yen (or US$15.0 billion). The US$15.1 billion market cap is also higher than that of Nikon, Fujitsu, Isuzu, Sanyo, All Nippon Airways, Sharp, or Mitsubishi Motors. It’s a new world we live in. Other market caps (Monday, May 13 at 11:30am JST):

GREE: $2.8 billion

DeNA: $3.6 billion

Zynga at $2.6 billion

Electronic Arts: $6.7 billion

Activision Blizzard: $16.7 billion

GungHo’s new owner SoftBank can be very happy.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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