China-based technology giant Tencent is considering the possibility of acquiring South Korean game developer Nexon in a bid to further consolidate its strong position in the gaming industry.
The Shenzhen-based company has reached out to the family of Nexon’s late founder Kim Jung-ju about a possible acquisition, according to people familiar with the matter.
Kim Jung-ju’s family holds shares in Nexon through the family’s investment firm NXC Corp. NXC and its subsidiary NXMH BV owned 44.4% of Nexon as of June 30. Kim’s wife and daughters also control about 67.6% of NXC. But it’s not yet clear how open NXC is to selling its Nexon stake. Tencent has yet to make a firm offer, the sources said, and it’s unclear whether the talks will lead to a final deal.
Tencent also tried to buy Nexon in 2019, but that attempt failed. The company has recently been increasing its interest in South Korean assets. In late May, a Tencent subsidiary reportedly agreed to buy about 10% of South Korean music production company SM Entertainment Co.
Founded in South Korea in 1994 and publicly traded in Japan in 2011, Nexon is known for its role-playing games. One of the company’s best-known productions, MapleStory, entered the Web3 world with an announcement made last March. Nexon announced that it would be moving the classic game to the Avalanche network and releasing a new version called “MapleStory Universe.” The game’s altcoin was listed simultaneously with the token production event held in mid-May on platforms such as NXPC, Binance, Bybit, Bitget, Upbit and Bithumb.
Following these developments, NXPC gained more than 11% in value in a short time, rising to $1.36.
*This is not investment advice.
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