Tencent plans to spend $15 billion to acquire Nexon and restart merger negotiations with Korean gaming giant

Tencent Holdings Ltd. is reportedly evaluating the possibility of acquiring South Korean game company Nexon for about $15 billion, aiming to further expand its influence in the global gaming industry. Several people familiar with the matter revealed that Tencent has recently contacted the family of Nexon's late founder Kim Jung-ju to discuss the acquisition of Nexon's controlling stake.

According to information, Nexon was founded by Kim Jung-ju in 1994, and its main products include "Dungeon & Fighter" and "MapleStory" and other popular multiplayer online games. Currently, Nexon is indirectly held by Kim Jung-ju's family-controlled investment company NXC Corporation with a 44.4% stake, while NXC Corp. itself is held by his wife and daughter with about 67.6% of the shares.

Although Tencent expressed a clear intention in this round of contacts, sources pointed out that it is still uncertain whether NXC is willing to sell, and the structure and valuation of the relevant transaction have not yet been finalized. People close to the transaction said that the current negotiations are still in the early stages, and whether an agreement can be reached in the future depends on many factors, including valuation coordination, regulatory review, and the policy environment of the Korean and Japanese markets.

This is not the first time Tencent has tried to acquire Nexon. As early as 2019, Tencent participated in the bidding for Nexon's equity, but ultimately failed due to price differences and other factors. As competition in the global gaming industry intensifies, Tencent has frequently deployed overseas in recent years and has invested in or controlled many internationally renowned gaming companies including Supercell, Riot Games, and Epic Games.

If this transaction is completed, it will become one of Tencent's largest overseas mergers and acquisitions in recent years, and it may also have a profound impact on the Chinese and Korean gaming industry landscape and the capital market valuation system.