[Market Focus] Nexon Games Rises on Reports of Tencent Considering Nexon Acquisition

As of 9:40 a.m. on June 13, Nexon Games shares on the KOSDAQ market were trading at 16,360 won, up 7.35% from the previous day's closing price. This appears to be due to foreign media reports that Chinese big tech company Tencent is considering acquiring Nexon.

Nexon's ownership structure is as follows: the family of the late Chairman Kim Jungju → Korean unlisted company NXC → Japanese listed company Nexon → Korean unlisted company Nexon Korea → Korean KOSDAQ-listed company Nexon Games.

The previous day, foreign media reported that Tencent was considering acquiring the Nexon Group for $15 billion (approximately 20 trillion won) to strengthen its gaming division, and that it had contacted the family of the late Nexon founder Kim Jungju to explore the possibility of an acquisition. However, neither Nexon nor Tencent has issued any official statement regarding these media reports.

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

Tencent already wields significant influence in the domestic gaming and entertainment industries. Among the top five domestic game companies by market capitalization, Tencent is the second-largest shareholder in three: Krafton, Netmarble, and Shiftup. Tencent also became the second-largest shareholder in SM Entertainment, after acquiring the entire 9.6% stake previously held by HYBE, following Kakao. In addition, Tencent holds stakes in Kakao Entertainment (4.6%) and YG Entertainment (4.3%).