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GREE’s Global Strategy and OpenFeint Acquisition

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Summary

GREE’s strategy centers on expanding a global social‑gaming network and monetizing through mobile games developed in Japan and internationally, targeting the rapidly growing smartphone market. The company plans to leverage its existing platform business while acquiring and partnering with key global players, notably OpenFeint, to accelerate market penetration. Data from the document show smartphone shipments worldwide rising from 180 million in 2005 to over 700 million by 2013, with smartphone penetration reaching 82 % of total shipments in 2010, underscoring the strategic timing for mobile expansion. OpenFeint, with 75 million users and 5,000 games as of April 2011, offers a robust developer ecosystem and monetization tools such as micro‑transactions and performance‑based advertising. Partnerships with Verizon Wireless, AT&T, and T‑Mobile provide access to 30–32 % of the U.S. carrier market, amplifying user acquisition potential. GREE intends to share platform specifications and co‑develop social features with OpenFeint, aiming to reduce porting costs and boost user engagement across both networks. The acquisition is structured as a triangular merger, with GREE International creating a subsidiary to acquire OpenFeint for approximately $104 million in cash. Financial and legal advisors, including Mitsubishi UFJ Morgan Stanley Securities and Morrison & Foerster LLP, guided valuation and transaction structure. Post‑merger, OpenFeint becomes a wholly owned subsidiary of GREE International, positioning the combined entity to compete for the top spot in global social gaming.

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GREE’s Global Strategy and OpenFeint Acquisition

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