South Korean gaming giant Krafton, known for their popular game PlayerUnknown’s Battlegrounds (PUBG), has made a significant investment of 120 billion won ($89.6 million) in Spoon Labs, a Seoul-based company that operates a short-form K-drama streaming platform. This marks Krafton’s largest investment in a non-gaming company, highlighting their interest in the growth potential of short-form dramas and the opportunity to secure new intellectual property. Spoon Labs, founded in 2013 by Neil Choi, initially started as an audio social networking platform before expanding into video streaming with its app Vigloo, offering bite-sized K-dramas across various genres.
Spoon Labs has seen success in overseas markets, with more than 60% of its revenue coming from countries outside of Korea. The company posted a record high revenue in the first half of 2024, and plans to double the number of drama series available by the end of the year. With the support of Krafton, Spoon Labs aims to expand its reach in the U.S. and Japan, with the release of Japanese drama series on the Vigloo platform. Krafton’s CEO, Kim Chang-han, expressed confidence in Spoon Labs’ ability to deliver entertainment that has global appeal and create a thriving industry ecosystem in the short-form drama platform business.
The investment in Spoon Labs is part of Krafton’s strategy to diversify its revenue stream beyond the PUBG game that has been a major source of income for the company. In addition to the investment in Spoon Labs, Krafton recently acquired Tokyo-based Tango Gameworks as part of its efforts to expand its game portfolio. The company has made investments in 27 companies since 2021, indicating a strong push towards diversification and growth in new areas. By investing in companies like Spoon Labs, Krafton aims to tap into emerging trends in the entertainment industry and establish a strong presence in different sectors.
Spoon Labs’ success in the short-form drama streaming market has attracted the attention of major investors, including Korean billionaire Lee Hae-jin’s Naver, IMM Investment, and KB Investment, among others. The company’s valuation reached 300 billion won in a Series C round in 2019, and it has also received investments from SoftBank, Altos Ventures, and Goodwater Capital, further solidifying its position in the industry. With the backing of these key investors and Krafton’s recent investment, Spoon Labs is well-positioned to continue its growth and expansion into new markets.
The launch of the short-form drama platform Vigloo has been met with positive reception, with the platform offering a diverse range of content in multiple languages. Spoon Labs’ focus on creating engaging and entertaining content for global audiences aligns with Krafton’s vision for the future of entertainment. By supporting innovative companies like Spoon Labs, Krafton aims to stay at the forefront of emerging trends in the industry and remain a key player in the competitive world of online entertainment. With the continued growth of Spoon Labs and the strategic investments made by Krafton, the partnership between these two companies is poised for success in the evolving digital landscape.
