Tencent Holdings Ltd. Eyes $15B Acquisition Deal with Nexon Co.
The tech giant Tencent Holdings Ltd. is reportedly in talks for a potential acquisition of Nexon Co., a leading gaming company. The deal, valued at $15B, is currently in the private negotiation stage, with no official confirmation yet.
Shares of Nexon surged by 10% following the news, pushing the company’s market value over $15B. The current trading price of Nexon Co. stands at 2,640 JPY, marking a 14.4% increase year-to-date.
Nexon Co. is primarily owned by Kim Jung-ju and his family, holding a 44.4% stake through NXS Corp. While discussions are ongoing, it remains unclear if the owners are willing to sell the company. Tencent is working on finalizing the acquisition structure and securing approval from all of Kim’s relatives.
Tencent’s interest in Nexon dates back to 2019 when the Chinese company first expressed desire to tap into the South Korean gaming and media market. Recently, Tencent acquired a 15% stake in Arrowhead Games, showcasing its commitment to expanding its gaming portfolio.
Nexon is renowned for popular titles like MapleStory, Crazyracing Kartrider, Sudden Attack, Dungeon & Fighter, and The First Descendant. The company has also ventured into Web3 gaming, supporting games like MapleStory Universe, Oasys, and CCP Games. Tencent’s involvement could potentially boost these games as the Web3 gaming trend gains traction.
Maple Story Universe, a Web3 game backed by Nexon, made waves by launching on Avalanche in early 2024. The game’s migration to blockchain technology led to a surge in on-chain activity, with increased user engagement and transaction volumes.
Avalanche continues to be a hub for on-chain gaming, with Maple Story Universe driving over 1M transactions daily. The game also introduced its own Avalanche L1, contributing to a tokenized in-game economy and fostering a Web3 gaming resurgence.
Despite challenges faced by the Web3 gaming sector, Nexon’s partnership with Avalanche has brought attention to the platform. Avalanche remains committed to organic growth and combating gaming bots, aiming to establish itself as a prominent L1 chain in the evolving gaming landscape.
In conclusion, Tencent’s potential acquisition of Nexon Co. signifies a significant move in the gaming industry, with implications for both traditional and Web3 gaming. The collaboration between these industry giants could pave the way for innovative gaming experiences and further integration of blockchain technology in the gaming ecosystem. Stay tuned for updates on this exciting development in the gaming world.