KRAFTON, the South Korean gaming giant behind PUBG: BATTLEGROUNDS, has announced the acquisition of Japan’s advertising powerhouse ADK Holdings for approximately 75 billion yen (US$516 million). This landmark deal unites a leader in global gaming with a company deeply rooted in Japan’s anime production ecosystem, having participated in over 300 anime production committees. The move signals a bold cross-media strategy spanning both South Korea and Japan, positioning both companies at the forefront of global IP development.

In a statement, KRAFTON emphasized the synergy between ADK’s anime planning and production capabilities and KRAFTON’s expertise in global game development and service. The acquisition is part of a broader mid- to long-term strategy to strengthen its IP portfolio, deepen cross-media links between anime and games, and solidify its operational base in Japan. CEO Kim Chang-han commented, “We aim to organically combine the strengths of both companies by continually exploring the various intersections between games and animation.” He also hinted at future initiatives such as turning anime into games and adapting game IPs into anime.

However, the acquisition also highlights deep-rooted structural challenges in the Japanese anime industry. Many anime studios rely on subcontracting models that prevent them from owning IP, resulting in low profit margins. Furthermore, Japan’s anime business has long depended on advertising revenue and has lagged behind international competitors in global expansion.

KRAFTON’s entry into this space can be seen as a foreign capital response to these systemic issues. With ADK’s proven media-mix strategies (as seen in Yu-Gi-Oh!) and KRAFTON’s global IP network, capital, and technology, the partnership aims to open up major international business opportunities.

Nonetheless, ADK currently faces reputational risks. Since 2024, the company has been working with Alt Inc. to create “AI avatars” of corporate executives. But Alt has been the subject of allegations of inflated revenues, and reports suggest ADK may have been involved in circular transactions designed to convert advertising expenses into SaaS revenue. Some critics have even labeled this scheme a “revenue conversion engine.”

Whether KRAFTON’s acquisition is a strategic move to distance itself from these controversies or merely an exit strategy by Bain Capital as it moves into the investment recovery phase remains unclear. However, considering that Bain Capital took ADK private in 2018, the timing of this sale—seven years later—can also be viewed as a reasonable exit.

Beyond the numbers, the deal symbolizes the convergence of two distinct content cultures: gaming and anime. It also reflects a turning point for Japan’s traditional media companies as they redefine themselves amid global competition. Whether KRAFTON and ADK can uphold their commitment to “collaborate while preserving their individuality” remains to be seen.