Tencent Holdings Ltd. is evaluating a potential acquisition of the South Korean gaming firm Nexon Co., according to sources familiar with the matter.

The Chinese technology company has approached the family of Nexon’s late founder, Kim Jung-ju, to discuss the possibility of a deal.

The Kim family holds a majority stake in Nexon through the investment firm NXC Corp., which owned 44.4% of Nexon as of June 30.

Kim’s wife and daughters collectively own about 67.6% of NXC. It is unclear whether the family is willing to sell its stake, and no final decision or deal structure has been confirmed.

Tencent’s interest in Nexon follows an unsuccessful acquisition attempt in 2019.

Founded in South Korea in 1994, Nexon went public in Japan in 2011 and is known for popular games like MapleStory.

Neither Tencent, Nexon, nor NXC has commented on the potential acquisition.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Gaming industry consolidation creates recurring acquisition targets

Tencent’s current pursuit of Nexon represents its second attempt to acquire the South Korean gaming giant in six years, reflecting the persistent drive for consolidation in the global gaming market.

In 2019, Tencent competed against Kakao and several private equity firms in a bidding war for Nexon valued at approximately $12 billion, but the process was ultimately shelved due to disagreements over price1.

This pattern of large gaming companies pursuing strategic acquisitions extends beyond Tencent, as evidenced by Nexon itself becoming the largest shareholder of rival Korean publisher NCsoft in 2012 through a $685.4 million investment for a 14.7% stake2.

The gaming industry’s consolidation trend is driven by companies seeking to acquire established intellectual property rather than developing new franchises, as demonstrated by Tencent’s March 2025 investment of $1.3 billion for a 25% stake in Ubisoft’s IP rights for franchises like Assassin’s Creed [original article].

Despite Nexon’s shares trading nearly 30% below their 2021 peak, the company’s strong Q1 2025 performance—with 21% year-over-year growth and Dungeon & Fighter showing 60% growth—makes it an attractive target in a sector where competitors like Ubisoft, GungHo, and Sega Sammy have seen declining share prices3.

2️⃣ Inheritance events create unique acquisition opportunities in family-controlled businesses