Tencent Eyes Acquisition of Nexon, Creator of MapleStory Web 3 Gaming Franchise

According to Bloomberg, Tencent, a Chinese technology conglomerate, is considering acquiring Nexon, a South Korean game developer known for titles such as Dungeon & Fighter and the ambitious MapleStory franchise, which has significant investments in Web 3 gaming. The firm has allegedly initiated discussions with the family of Nexon's late founder, Kim Jung-ju, who holds a 44.4% stake in the company through NXC Corp. Although talks are still in the preliminary stages and may not yield a deal, a successful acquisition would give Tencent control over a company with a $16.6 billion market capitalization, potentially reinvigorating its global gaming M&A ambitions. This move could provide Tencent with a stronger foothold in South Korea's gaming market and secure long-term control over popular intellectual properties. However, the deal's complexity is heightened by the fact that the Kim family, who inherited control after the founder's death in 2022, has transferred shares to the Korean government to settle inheritance taxes, and the government has been unable to sell its stake. Tencent previously attempted to acquire Nexon in 2019, but those talks collapsed due to pricing disagreements. This new attempt comes after Tencent's $1.3 billion investment in a new Ubisoft unit and the acquisition of a 10% stake in K-pop label SM Entertainment, as well as its expansion into the blockchain space with a memorandum of understanding to develop blockchain API services with Ankr.