Tencent Reportedly Exploring Potential Acquisition of Nexon

Image: Tencent/Nexon

Tencent is reportedly exploring a potential acquisition of Nexon, the South Korean-Japanese gaming giant known for franchises like MapleStory, The First Descendant, and The First Berserker: Khazan.

According to a recent report by Bloomberg, Tencent is currently “studying a deal” to purchase Nexon in a bid to expand its already massive gaming portfolio. More recently, they have invested in Arrowhead Game Studios (Helldivers 2) and Ubisoft (Assassin’s Creed).

Nexon, founded in 1994 and publicly listed in Japan since 2011, is currently valued at around $15 billion. The company has had a solid run lately, both in terms of game releases and financial performance. Its Q1 2025 financials showed net sales of approximately ¥114 billion, with net income reaching ¥26 billion. Nexon is also the majority owner of Embark Studios, the team behind The Finals and ARC Raiders, which further adds to its strategic value.

The discussions are said to involve the family of Nexon’s late founder, Kim Jung-ju, who passed away in 2022. The family holds a significant stake in Nexon through NXC Corp. and NXMH BV, controlling around 44.4% of the company. However, the internal dynamics are a bit complicated. Following Kim’s death, his wife and two daughters inherited his stake, and part of that was handed over to the South Korean government to settle inheritance taxes. Local media previously reported that the government has struggled to offload this stake due to a lack of buyers.

While Tencent has reached out to the family regarding a possible acquisition, there’s no confirmation yet on whether NXC is willing to sell or if Tencent is aiming for a partial or full acquisition. Tencent, Nexon, and NXC have all declined to comment on the matter.

Notably, this isn’t Tencent’s first attempt to buy into Nexon. Back in 2019, the company was reportedly interested, along with other firms like KKR & Co. and Hillhouse, but the sale was ultimately shelved over pricing disagreements. However, Tencent and Nexon have maintained a working relationship since then—most notably on Dungeon & Fighter, a major revenue-generating title in China.

The potential acquisition comes at a time when Nexon’s stock has risen by over 10% this year, though it still sits nearly 30% below its 2021 peak.

If Tencent does move forward with this acquisition, it would mark another significant step in consolidating its position as a dominant force in the global gaming landscape.

UPDATE: June 19 - Tencent has refuted the claims of its intention to acquire Nexon in a statement to Reuters.