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Ex-Zynga Executive Gains Nexon Investment in Game Company

Zynga Inc.’s former chief operating officer received an investment for his video-game startup from free-to-play pioneer Nexon Co., going into competition with his ex-employer.

Nexon, based in Tokyo, gains exclusive global publishing rights to new PC and mobile titles being developed by Miami-based Shiver Entertainment Inc., according to a statement today. Terms of the cash investment weren’t disclosed.

Shiver was formed by John Schappert, a video-game industry pioneer who resigned from Zynga, the maker of “Farmville,” in August 2012 after being stripped of some responsibilities overseeing game development. He had been lured away from Electronic Arts Inc., the second-largest U.S. game developer, with a pay package worth $42.8 million.

Owen Mahoney, Nexon’s chief financial officer, will gain a seat on Shiver Entertainment’s board of directors.

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