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Korea Herald
4 days ago
- Business
- Korea Herald
Tencent says 'no deal' to Nexon, Kakao Mobility stake rumors
In rare public denial, Chinese tech giant refutes reports of new Korean deals after years of increasing stakes in local firms Chinese tech giant Tencent denied reports Thursday that it was considering acquiring stakes in Korean firms Nexon and Kakao Mobility, dismissing speculation surrounding its potential investment moves. According to Reuters, Tencent said claims about its interest in purchasing shares in Korean game giant Nexon and Kakao's mobility unit were 'untrue,' following media reports that suggested the company was seeking to expand its footprint in Korea's IT and mobility sectors. The rebuttal comes after a local news outlet reported that Tencent was in talks to acquire around 40 percent of Kakao Mobility's shares held by financial investors, including private equity firm TPG (29 percent), Carlyle Group (6.17 percent), LG (2.46 percent) and Google (1.52 percent). Kakao is the largest shareholder with a 57.2 percent stake. Industry sources said TPG and other financial investors have been engaged in discussions with potential buyers such as the VIG consortium, which includes Mubadala and Goldman Sachs, regarding the sale of their shares. The report that Tencent had also expressed interest in Kakao Mobility added fuel to speculation over multiple suitors. Separately, Bloomberg reported last week that Tencent was considering acquiring Nexon shares worth $15 billion from its holding company NXC and had been in contact with the family of the late Nexon founder Kim Jung-ju. The report suggested Tencent aimed to strengthen its presence in the global gaming market. Neither Kakao Mobility nor NXC have issued official statements in response to the reports. TPG is reportedly exploring options with various investors regarding the sale of its Kakao Mobility stake, but sources said the talks remain at a preliminary stage and do not involve any intent to secure management control. Tencent previously showed interest in acquiring Nexon during a 2019 bidding process but did not participate in the main auction. Some sources suggest that Tencent may continue its efforts to pursue an acquisition of the Korean firms. Tencent has a history of investing in Kakao and its affiliates. Since making its initial investment in Kakao in 2012, the Chinese tech giant has acquired stakes in Kakao Games and Kakao Entertainment. It currently holds a 5.95 percent stake in Kakao. Meanwhile, Tencent's music streaming arm, Tencent Music Entertainment Group, recently acquired a 9.38 percent stake in SM Entertainment from Hybe through a block deal valued at 240 billion won ($174 million). It makes Tencent the second-largest shareholder of SM, following Kakao and Kakao Entertainment's combined 41.5 percent stake. yeeun@
Yahoo
13-06-2025
- Business
- Yahoo
Tencent explores acquisition of Nexon to strengthen gaming portfolio
Tencent Holdings is reportedly exploring a potential acquisition of Nexon to bolster its gaming operations. The Chinese company has initiated discussions with the family of Nexon's late founder, Kim Jung-ju, regarding a possible deal, reported Bloomberg. Nexon, established in South Korea in 1994 and listed in Japan in 2011, is known for popular role-playing games such as MapleStory. Tencent and Nexon have previously collaborated on projects, including the co-development of Dungeon & Fighter, which has been a major source of revenue. The Kim family holds their stake in Nexon through NXC, which owned 44.4% of Nexon as of 30 June, according to Nexon's interim report. Kim's wife and daughters control approximately 67.6% of NXC. While the family is consulting advisers to evaluate their options, it remains unclear how open they are to selling their Nexon stake, and there is no guarantee that Tencent's discussions will lead to a transaction, the report said. This move follows Tencent's previous attempt to acquire Nexon in 2019 and coincides with other investments in South Korean assets. In late May 2025, a Tencent subsidiary agreed to purchase a nearly 10% stake in Seoul-based music producer SM Entertainment, aligning with the easing of an unofficial ban on K-pop in mainland China. In March, Tencent also committed €1.16bn ($1.3bn) for a 25% stake in a new Ubisoft unit holding intellectual property rights, including those for Assassin's Creed. In 2024, Tencent cancelled its mobile game based on Square Enix's Nier franchise after two years of development, citing monetisation challenges amid high costs and franchise rights issues. "Tencent explores acquisition of Nexon to strengthen gaming portfolio" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Korea Herald
13-06-2025
- Business
- Korea Herald
Tencent seeks to buy stake in Nexon at $15b
Tencent is reportedly considering acquiring a stake in South Korean game giant Nexon at 20 trillion won ($15 billion), a move that would further solidify the Chinese tech giant's presence in the Korean cultural content market. According to Bloomberg, Tencent Holdings has reached out to the family of Nexon's late founder Kim Jung-ju to discuss the possibility of an acquisition. The report added that the size or structure of the deal is unclear. Both Tencent and Nexon have declined to respond to the report. Kim's wife and daughters own about 67.6 percent of the game giant's holding company NXC. Through NXC, they own a 44.4 percent stake in Nexon. Considering the stakes, the deal is estimated to be worth 20 trillion won. The other 30.64 percent stake in NXC is owned by the Korean government. Kim's relatives turned in the shares worth roughly 4.7 trillion won to the government to pay off an inheritance tax. The Finance Ministry has been trying to sell the stake through a tender offer but has failed on multiple occasions. Tencent has long shown interest in Nexon. In 2019, it was named as a potential bidder when NXC was put up for sale. It ultimately did not participate in the bidding. At the time, market big names including Kakao and Netmarble submitted bids, but the sale was eventually called off without a deal. Tencent has been pushing to tighten its grip on the Korean cultural content market through strategic equity investments, holding 34.76 percent stake in Shift Up, 13.71 percent of Krafton, and 17.52 percent in Netmarble, making it the second-largest shareholder in each. It is also the third-largest shareholder in Kakao Games with a 3.88 percent stake. In May, Tencent Music Entertainment, a subsidiary of the Chinese tech giant, acquired the entire 9.38 percent stake of K-pop powerhouse SM Entertainment held by Hybe, valued at approximately 200 billion won. The acquisition positioned Tencent as the second-largest effective shareholder of SM. With the talks of an acquisition deal brewing up, shares of Tokyo-listed Nexon surged as much as 10 percent shortly after the market started trading Friday. Seoul-listed Nexon Games saw a 10 percent surge in its share price as well.
Business Times
12-06-2025
- Business
- Business Times
Tencent said to study deal for US$15 billion game developer Nexon
[BEIJING] Tencent Holdings is studying a potential deal for Nexon, as the Chinese Internet giant looks for ways to bolster its lucrative gaming operations, people with knowledge of the matter said. Shenzhen-based Tencent has reached out to the family of Nexon's late founder Kim Jung-ju to discuss the possibility of an acquisition, the people said, asking not to be identified because the information is private. Kim's family has been speaking to advisers and evaluating options, according to the people. Kim's relatives hold their stake through family investment firm NXC Corp, which – together with affiliated unit NXMH BV – owned 44.4 per cent of Nexon as of June 30, according to Nexon's interim report. Kim's wife and daughters own about 67.6 per cent of NXC. It's unclear how receptive NXC is to a sale of the Nexon holding, and there's no certainty Tencent's deliberations will lead to a transaction, the people said. The structure of any deal hasn't been finalised, they added. A representative for Tencent didn't respond to a request seeking comment, while Nexon and NXC declined to comment. The move comes as Tencent, which already pursued an acquisition of Nexon in 2019, makes fresh forays into other South Korean assets. A subsidiary agreed to buy a nearly 10 per cent stake in Seoul-based music producer SM Entertainment in late May, just as an unofficial ban on K-pop in mainland China wanes. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Known for role-playing games like MapleStory, Nexon was founded in South Korea in 1994 and listed in Japan in 2011, in one of the biggest tech-related initial public offerings at the time. Nexon shares have climbed more than 10 per cent in Tokyo trading this year, giving the company a market value of about $15 billion. Changes in the shareholding structure after Kim's death in 2022 could complicate any deal. Family members handed the Korean government a stake in the NXC holding company in 2023 to settle an inheritance tax bill. Kim's wife and two daughters inherited his stake in NXC after he died in Hawaii. The family also sold treasury shares in NXC back to the holding company for US$478 million in August. The Korean government has sought to sell its holding but failed to find a suitor, local media reported. Shares of rival game developers like Ubisoft Entertainment, GungHo Online Entertainment and Sega Sammy Holdings have declined this year. While Nexon shares are up in 2025, they're nearly 30 per cent off a peak in 2021. NXC explored a sale of its Nexon stake six years ago, attracting interest from Tencent as well as buyout firms such as KKR & Co. and Hillhouse. The sale process was eventually shelved because of a failure to agree on price, Bloomberg News reported at the time. Nexon and Tencent have already worked together, developing Dungeon & Fighter, a key revenue generator. In March, Tencent agreed to invest US$1.3 billion for a 25 per cent stake in a new Ubisoft unit that holds the rights to intellectual properties including Assassin's Creed. Nexon's first-quarter net sales totalled about 114 billion yen (S$1.01 billion), while net income was 26 billion yen. BLOOMBERG
