Tencent Explores Acquisition of Nexon for $15 Billion
Tencent is considering acquiring Nexon, a South Korean game developer known for Dungeon & Fighter and invested in Web 3 gaming. Key points include:
- Nexon's late founder Kim Jung-ju's family controls a 44.4% stake via NXC Corp.
- Discussions are preliminary; no deal is guaranteed.
- Nexon has a market capitalization of $16.6 billion.
- A successful deal could enhance Tencent's position in the global gaming market after previous regulatory setbacks.
- The Kim family's control is complicated due to shares handed to the Korean government for inheritance taxes.
- Tencent previously attempted to acquire Nexon in 2019, but talks failed over pricing.
- This follows Tencent's recent investments in Ubisoft and a stake in SM Entertainment.
- Tencent is also expanding into blockchain services through a partnership with Ankr.