Tencent of China Considering Acquisition of Nexon for About 20 Trillion Won

Bloomberg News reported on June 12 that Tencent of China is considering acquiring the Korean game company Nexon.

According to Bloomberg, citing anonymous sources familiar with the matter, Tencent Holdings is reviewing a plan to acquire Nexon for $15 billion (approximately 20 trillion won) as part of its efforts to strengthen its gaming division.

Tencent, headquartered in Shenzhen, China, is said to have approached the family of the late Nexon Group founder Kim Jungju to explore the possibility of an acquisition.

While the family is reportedly considering the proposal, Bloomberg noted that it remains uncertain how positively NXC, Nexon Group’s holding company, is reviewing the acquisition plan, as well as what the structure of the deal would be.

Both Tencent and NXC of Nexon declined to comment on the matter.

Bloomberg stated, "Nexon, known for role-playing games (RPGs) such as MapleStory, was founded in Korea in 1994 and listed in Japan in 2011. At the time, it was one of the largest initial public offerings (IPOs), and Nexon's share price has risen more than 10% on the Tokyo Stock Exchange this year."

Chinese local media outlets such as Sina Finance also reported, citing Bloomberg, that "Tencent is considering acquiring Nexon," and added that "Tencent currently services Nexon's Dungeon & Fighter, which is very popular in China."

Previously, Tencent had expressed its intention to participate in the 2019 Nexon acquisition bid, but ultimately did not take part in the main bidding process.

In addition, Tencent Music Entertainment, a subsidiary of Tencent, acquired all of the SM Entertainment shares held by Hybe at the end of last month, amounting to about 200 billion won, making it the second-largest substantial shareholder of SM after Kakao and Kakao Entertainment (combined 41.50%).