Krafton and Naver Z to Establish $36.5M Joint Venture for Metaverse Platform
In Brief
South Korean game developer is joining forces with Naver Z to form a metaverse joint company.
The total amount invested in the joint venture is $36.5 million.
Krafton will hold an 85% stake in the joint venture.
Krafton, the developer of PUBG: BATTLEGROUNDS, is joining forces with Naver Z, the metaverse unit of South Korean internet conglomerate Naver Corp, to form a joint venture for a metaverse platform.
A total of $36.5 million will be invested in the joint venture. Krafton is expected to pour in 40.8 billion won ($30.98 million), while Naver Z will invest 7.2 billion won ($5.46 million). Following that, Krafton will hold an 85% stake in the joint venture, with the remaining 15% stake held by Naver Z.
Last February, Krafton announced a partnership with Naver Z to build an NFT metaverse platform. According to the announcement, Krafton plans to leverage its expertise in developing online games to build a user-generated content (UGC) creation tool and a high-quality virtual world using the Unreal Engine. Meanwhile, Naver Z will tap into its experience in designing and operating ZEPETO to oversee the management of the metaverse service.
Since last year, both companies have been working on a web3-based metaverse project, “Migaloo,” targeted for release this year. The new joint company will be incorporated in North America, and its name will be announced at the time of its establishment.
Adopting a create-to-earn (C2E) model, Migaloo will allow creators to produce various works in the metaverse platform and sell them as NFTs. All transactions will be recorded on the blockchain.
In the joint venture, Krafton will focus on developing sandbox tools and blockchain systems for creators, while Naver Z will handle service planning and partnership acquisition. The collaboration aims to combine Krafton’s experience in the global gaming industry with Naver Z’s expertise in developing and operating the virtual platform ZEPETO, resulting in synergy.
Kim Chang-wook, CEO of Naver Z, said that ZEPETO’s creator-centric ecosystem would be implemented in Migaloo. “We will continue to grow Migaloo as a new metaverse platform where creators can realize new value in an NFT-based ecosystem based on their creative works,” he added.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.
