Is Tencent Planning to Acquire Nexon?
Yesterday, the international technology and gaming community was stirred by news from Bloomberg, confirming that Tencent Holdings is considering a buyout of the shares of the South Korean gaming company Nexon at a valuation of up to 15 billion USD. Notably, Tencent has begun to engage with the family of the late founder of Nexon – Mr. Kim Jong-ju – to negotiate terms related to the acquisition.
Nexon (founded in 1994) is one of the “pioneering legends” in the South Korean online gaming industry. The company’s name is closely associated with iconic products like MapleStory, Bubble Hall, and Dungeon & Fighter, which are also among Tencent’s “golden geese” in the Chinese market. In recent years, Nexon has strengthened its presence in the game publishing sector with products like Diver Dave and Kazan, achieving significant commercial success.
Currently, Nexon is under the control of NXC Corporation, which is managed by the Kim Jong-ju family, holding 67.6% of the shares. This means that to carry out the acquisition, Tencent must negotiate directly with the founding family. If approved, Tencent could potentially “hold the keys” to any future decisions regarding the company’s direction.
Not the First Time and Possibly Not the Last for Tencent to Pursue a Deal
It is noteworthy that this is not the first time Tencent has shown interest in Nexon. Starting as early as 2019, the Chinese company has reportedly considered various investment options to acquire shares from Mr. Kim Jong-ju. However, the negotiations faltered as both parties could not agree on a valuation.
Despite many changes, the relationship between Tencent and Nexon remains strong, especially in business activities related to IPs like Dungeon & Fighter (DNF). Recently, the game title “Kazan,” which draws inspiration from the DNF universe, has also recorded positive revenue. Tencent has officially become the distributor of Kazan in China, enhancing the strategic partnership between the two companies.
In summary, if the acquisition at 15 billion USD is successful, it will be one of the largest buyouts in the history of the gaming industry in Asia. It would not only help Tencent strengthen its position in the domestic market but also expand its portfolio of gaming IPs, allowing it to compete with global rivals. Currently, both Tencent and Nexon have not yet released any official comments.
Source: Bloomberg
