Tencent Holdings Ltd. is reportedly considering acquiring Nexon Co. to strengthen its gaming division. The Chinese tech giant has approached the family of Nexon's late founder, Kim Jung-ju, to discuss a potential deal. This move comes as Tencent seeks to expand its portfolio with globally impactful content, following the success of Nexon's "Dungeon & Fighter Mobile." Nexon's stock surged 10% in Tokyo, reflecting investor optimism.
Nexon, known for games like "MapleStory," has seen its stock rise over 10% this year, valuing the company at approximately $15 billion. However, any acquisition could face regulatory scrutiny in Korea. Tencent's past attempt to acquire Nexon in 2019 was unsuccessful, but the company continues to pursue Korean assets, recently acquiring a stake in SM Entertainment Co.
The Kim family, through their investment company NXC Corp., holds a 44.4% stake in Nexon. The family's internal restructuring and past government interactions could complicate any potential deal. Despite challenges, Tencent's collaboration with Nexon on "Dungeon & Fighter Mobile" provides additional motivation for the acquisition.
Nexon's first-quarter net sales were about 114 billion yen, with a net profit of 26 billion yen.
