Latest news with #KimJungju
Yahoo
a day ago
- Business
- Yahoo
Tencent's $15 Billion Power Play? Nexon Deal Talks Spark Investor Buzz
Tencent (TCEHY) may be plotting a fresh move to expand its gaming empire. According to people familiar with the matter, the Chinese tech giant has quietly approached the family of Nexon founder Kim Jung-ju to explore a possible deal for the South Korean gaming company. The talks are still at an early stage, and it's unclear whether the familywho holds a controlling stake via investment firm NXC even open to selling. After shelving a similar effort in 2019 due to pricing issues, Tencent appears to be testing the waters again, potentially hoping the fragmented ownership structure post-Kim's passing could shift the odds in its favor. Nexon has been gaining traction again this year. The company's shares are up over 10% in Tokyo, despite sitting nearly 30% below their 2021 highs. First-quarter net sales came in at 114 billion with net income of 26 billionrespectable figures for a legacy game studio that still draws millions through titles like MapleStory and Dungeon & Fighter, the latter co-developed with Tencent. Still, navigating a deal won't be simple. Kim's family handed part of its NXC stake to the Korean government to settle inheritance taxes in 2023, and also sold $478 million worth of treasury shares last August. That mix of government involvement and family dynamics adds multiple layers of complexity. Strategically, Tencent seems to be doubling down on South Korea. It recently took a nearly 10% stake in SM Entertainment, and has been expanding its gaming and entertainment footprint even as regulatory pressures in China linger. But with no structure finalized and no clear green light from NXC, investors should approach this with cautious interest. A successful acquisition could give Tencent deeper access to Nexon's IP and recurring revenue basebut it may also reignite the valuation tug-of-war that derailed talks last time. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Nexon Shares Jump 10% as Tencent Said to Study Acquisition
The shares of Nexon Co. surged 10% after Bloomberg reported Tencent Holdings Ltd. is studying a potential deal for the gaming company to bolster its presence in that segment. Tencent has reached out to the family of Nexon's late founder Kim Jung-ju, who hold their stake through family investment firm NXC Corp., to discuss the possibility of an acquisition, people with knowledge of the matter said.
Bloomberg
2 days ago
- Business
- Bloomberg
Tencent Said to Study Deal for $15 Billion Game Developer Nexon
Tencent Holdings Ltd. is studying a potential deal for Nexon Co., as the Chinese internet giant looks for ways to bolster its lucrative gaming operations, people with knowledge of the matter said. 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.
