Tencent weighs $15B takeover of Korean game developer Nexon: Report

Tencent Holdings, China’s tech giant, is reportedly reviewing a $15 billion acquisition of Korean game developer Nexon, according to a Bloomberg report published Thursday.

Tencent logo is seen in this illustration created on Feb. 16. [REUTERS/YONHAP]

Tencent Holdings, China’s tech giant, is reportedly reviewing a $15 billion acquisition of Korean game developer Nexon, according to a Bloomberg report published Thursday.

Sources familiar with the matter said Tencent has approached the family of the late Nexon founder Kim Jung-ju to explore a potential deal.

The report said it is “unclear” whether NXC, Nexon’s investment firm, is open to selling its stake. The deal structure remains undecided, and there is no guarantee the discussions will lead to a transaction.

Kim’s wife and daughter collectively own approximately 67.6 percent of NXC shares.

Tencent, Nexon and NXC all declined to comment.

The Nexon logo [NEXON]

“Known for role-playing games like MapleStory, Nexon was founded in Korea in 1994 and listed in Japan in 2011, in one of the biggest tech-related initial public offerings at the time,” Bloomberg wrote. “Nexon shares have climbed more than 10 percent in Tokyo trading this year, giving the company a market value of about $15 billion.”

Tencent had reportedly expressed interest in acquiring Nexon’s stake in 2019, but the talks were abandoned due to pricing disagreements.

Nexon and Tencent previously co-developed the role-playing game series Dungeon & Fighter.

The Chinese tech giant is currently the second-largest shareholder of K-pop powerhouse SM Entertainment, after acquiring HYBE’s entire 9.4 percent stake — valued at approximately 200 billion won ($146 million) — last month.

BY SHIN MIN-HEE [shin.minhee@joongang.co.kr]