TryHard Holdings Limited announced a memorandum of cooperation with STAR PARTY HK Limited to explore the creation of a joint‑venture company in Japan, tentatively named Star Party Japan Investment Co., Ltd. The proposed entity would have a registered capital of 90 million Japanese yen. TryHard will contribute 7.5 million Chinese yuan in cash—equivalent to 31.5 million yen—representing 35 % of the equity, while STAR PARTY will provide an equivalent amount and hold 65 % of the shares.
The memorandum is explicitly non‑binding and will be followed by detailed due diligence and regulatory approvals before a definitive agreement is signed. The cash contributions are split between registered capital and capital reserves: STAR PARTY’s 7.5 million yuan includes 58.5 million yen recorded as registered capital and the remainder as a reserve, whereas TryHard’s contribution allocates 31.5 million yen to registered capital.
Strategically, the partnership seeks to combine STAR PARTY’s proven KTV+ social‑space model—integrating karaoke, murder‑mystery games, and music socializing—with TryHard’s venue‑management and consultancy expertise. The joint venture would introduce the “Star Party” brand to the Japanese market, where TryHard currently has limited presence, potentially creating a new revenue stream and leveraging synergies in venue operations and customer engagement.
Despite the strategic upside, the announcement coincided with a recent equity purchase agreement that allowed TryHard to sell up to $25 million of its shares. Investors reacted negatively, reflecting concerns about dilution and the preliminary nature of the MoC. The market’s cautious stance underscores the importance of the financing context when evaluating the partnership’s value.
CEO Masashi Otsuki said, “We are pleased to cooperate with STAR PARTY HK Limited on the Star Party initiative. By combining our respective strengths, we aim to create meaningful engagement in the Japanese market.” The statement signals confidence in the partnership while acknowledging the need for further negotiation and regulatory clearance.
The joint‑venture remains in early stages; completion will depend on the outcome of due diligence, regulatory approvals, and the signing of a definitive agreement. Investors should monitor progress and any subsequent announcements for clarity on the venture’s timeline and financial impact.
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