Tencent Holdings Ltd., the Chinese technology and entertainment conglomerate, is reportedly exploring the acquisition of Nexon Co., a South Korean video game developer and publisher. This potential move signifies Tencent's ambition to further solidify its position as a global leader in the gaming industry.
According to sources familiar with the matter, Tencent has initiated discussions with the family of Nexon's late founder, Kim Jung-ju, regarding a possible deal. Kim's family, who hold a substantial stake in Nexon through their investment firm NXC Corp., are reportedly consulting with advisors to evaluate their options. NXC Corp., along with its affiliate NXMH BV, held 44.4% of Nexon as of June 30, according to Nexon's interim report. Kim's wife and daughters control approximately 67.6% of NXC.
Nexon, founded in 1994 in South Korea, is renowned for developing and publishing popular online games such as MapleStory, Dungeon & Fighter, and KartRider. The company moved its headquarters to Tokyo, Japan, in 2005 and has since expanded its operations to include offices in Korea, the United States, Taiwan, and Thailand. Nexon's shares are listed on the Tokyo Stock Exchange, and the company currently boasts a market capitalization of approximately $15 billion. As of June 9, 2025, Nexon's stock price is $18.00. Its current market cap is $14.4B with 802M shares. As of March 31, 2025, Nexon has a trailing 12-month revenue of $2.96 billion.
Tencent's interest in Nexon is not new. The Chinese tech giant previously attempted to acquire the South Korean gaming company in 2019, but the deal ultimately fell through due to pricing disagreements. Despite the failed acquisition attempt, Tencent and Nexon have maintained a collaborative relationship. The two companies have co-developed and localized several new games for Chinese players, including The First Berserker: Khazan. Dungeon & Fighter is one of Tencent's top-grossing titles in China.
The potential acquisition of Nexon would provide Tencent with a significant boost to its gaming portfolio. Nexon's established franchises and extensive experience in online game development would complement Tencent's existing gaming assets and strengthen its ability to compete in the global gaming market.
From a financial standpoint, the deal could prove to be a boon for Tencent. Nexon reported net sales of ¥114 billion and a net income of ¥26 billion for the first quarter of 2025. These earnings would directly contribute to Tencent's gaming segment, which already delivered strong results last quarter. Tencent posted RMB 42.9 billion (approximately $5.95 billion) in domestic games revenue, up 24% year-over-year. Its international gaming business grew 23% to RMB 16.6 billion (approximately $2.3 billion).
However, the acquisition is not without its potential challenges. The Kim family's shareholding structure and a partial stake held by the South Korean government could complicate the transaction. Furthermore, it remains uncertain whether NXC is open to selling its stake in Nexon.
Tencent's strategic focus includes artificial intelligence. The company is developing its own large language models to compete with domestic and international rivals. The integration of AI technology into Tencent’s core platforms, such as Weixin chat and its advertising systems, represents a strategic priority. The company’s ability to monetize these investments will be crucial for long-term shareholder value creation.
As of now, the negotiations between Tencent and the Kim family are still in the early stages, and there is no guarantee that a deal will be reached. The structure of any potential agreement has not been finalized, and many factors could influence the outcome of the discussions.
