The international tech giant Tencent Holdings Ltd. is reportedly in talks regarding the potential acquisition of gaming firm Nexon Co. Recent news has led to a significant surge in Nexon shares.
Details of the Potential Deal
Tencent Holdings Ltd. is currently in private discussions about potentially acquiring Nexon Co. for around $15 billion. Following this news, Nexon shares rose by 10%, valuing the company at over $15 billion. Nexon is still primarily owned by Kim Jung-ju and his family, who hold a 44.4% share through NXS Corp. Talks remain in the preliminary stages, and it is unclear if the owners are willing to sell.
History of Nexon and Its Game Portfolio
Founded in South Korea in 1994, Nexon has been a public company since 2011 with a listing in Japan. Notable games from the company include MapleStory, Crazyracing Kartrider, Sudden Attack, and Dungeon & Fighter. Over the past few years, Nexon has been active in supporting the Web3 gaming boom, backing titles like MapleStory Universe and others.
Impact on Web3 Games and Avalanche
Tencent's potential involvement with Nexon could benefit titles like MapleStory Universe, especially as on-chain activity looks to revive. MapleStory Universe used its main IP to plan a launch on Avalanche in early 2024. Meanwhile, Avalanche reports significant increases in on-chain activity, notably from MapleStory Universe, which is achieving over 1 million transactions daily.
The potential acquisition of Nexon by Tencent highlights an increasing interest in gaming assets and Web3 technologies in the gaming industry, as well as opening up new opportunities for market expansion.
