Tencent said to study deal for US$15 billion game developer Nexon
Shenzhen-based Tencent has reached out to the family of Nexon's late founder Kim Jung-ju to discuss the possibility of an acquisition, the people said, asking not to be identified because the information is private. Kim's family has been speaking to advisers and evaluating options, according to the people.
Kim's relatives hold their stake through family investment firm NXC Corp, which – together with affiliated unit NXMH BV – owned 44.4 per cent of Nexon as of June 30, according to Nexon's interim report. Kim's wife and daughters own about 67.6 per cent of NXC.
It's unclear how receptive NXC is to a sale of the Nexon holding, and there's no certainty Tencent's deliberations will lead to a transaction, the people said. The structure of any deal hasn't been finalised, they added.
A representative for Tencent didn't respond to a request seeking comment, while Nexon and NXC declined to comment.
The move comes as Tencent, which already pursued an acquisition of Nexon in 2019, makes fresh forays into other South Korean assets. A subsidiary agreed to buy a nearly 10 per cent stake in Seoul-based music producer SM Entertainment in late May, just as an unofficial ban on K-pop in mainland China wanes.
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Known for role-playing games like MapleStory, Nexon was founded in South Korea in 1994 and listed in Japan in 2011, in one of the biggest tech-related initial public offerings at the time. Nexon shares have climbed more than 10 per cent in Tokyo trading this year, giving the company a market value of about $15 billion.
Changes in the shareholding structure after Kim's death in 2022 could complicate any deal. Family members handed the Korean government a stake in the NXC holding company in 2023 to settle an inheritance tax bill.
Kim's wife and two daughters inherited his stake in NXC after he died in Hawaii. The family also sold treasury shares in NXC back to the holding company for US$478 million in August.
The Korean government has sought to sell its holding but failed to find a suitor, local media reported.
Shares of rival game developers like Ubisoft Entertainment, GungHo Online Entertainment and Sega Sammy Holdings have declined this year. While Nexon shares are up in 2025, they're nearly 30 per cent off a peak in 2021.
NXC explored a sale of its Nexon stake six years ago, attracting interest from Tencent as well as buyout firms such as KKR & Co. and Hillhouse. The sale process was eventually shelved because of a failure to agree on price, Bloomberg News reported at the time.
Nexon and Tencent have already worked together, developing Dungeon & Fighter, a key revenue generator. In March, Tencent agreed to invest US$1.3 billion for a 25 per cent stake in a new Ubisoft unit that holds the rights to intellectual properties including Assassin's Creed.
Nexon's first-quarter net sales totalled about 114 billion yen (S$1.01 billion), while net income was 26 billion yen. BLOOMBERG
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