New Rumor Suggests Tencent to Acquire South Korea’s NXC Corp (Nexon) Who Owns Bitstamp & Korbit Crypto Exchanges

News coming from Seoul/Hong Kong indicate that Tencent Holdings Ltd, the Chinese Gaming titan is considering making a bid for Nexon. According to information obtained by Reuters, Tencent aims to do this by acquiring the holding company that currently holds overall control over Nexon operations.

The sources intimated to Reuters that Tencent is hopeful that it will be able to enlist willing co-investors. Information obtained by the news organization also indicates that there are various private equity firms that have been studying their options in order to make a reasonable deal.

Some have even contemplated making the openly listed corporation private.

Nexon Shareholders

A Korean Economic Daily newspaper earlier this month reports that Kim Jun-ju, the Nexon founder was interested in selling his stake in the NXC Corp holding firm. Kim and his wife, together with other related parties currently hold a ninety-eight point six four percent stake in the company.

The total stake is valued at between eight trillion and ten trillion won, which is equivalent to between seven point one billion American dollars and eight point nine billion American dollars. This is based on the information obtained from reports published in the Maeil Business Newspaper and the Korea Economic Daily.

According to Reuters sources, the sale is being run by Morgan Stanley and Deutsche Bank. The two financial institutions, however, refused to comment on the impending sale. According to the Maeil Business Newspaper, Goldman Sachs was picked by Tencent to act on an advisory capacity. The paper cited unidentified sources when releasing these reports.

The paper goes on to add those other companies that may be interested in making an offer for the stake include MBK Partners, Carlyle Group, TPG Capital, and KKR & Co Inc. Tencent and NXC Corp have also refused to provide a comment on this sale.

Nexon and Tencent—Brief History

Nexon was founded in 1994. Since inception, it has been able to develop more than eighty games which have gone on to be distributed to more than one hundred and ninety countries. The IP-franchise, which produced major hits such as KartRider, Sudden Attack, Dungeon & Fighter, and MapleStory are also a part of the Nexon Corporation.

Tencent currently happens to be the largest gaming company in the world in terms of total revenue generated from the sale of games. It holds an exclusive license to market and sell the Dungeon & Fighter game in China.

It is worth noting that Tencent—which is a social media-to-payments company—recently had to contend with persistent crackdowns on its operations which were carried out by the Chinese authorities. The authorities had stopped issuing new titles in March 2018. This move had been informed by an overhaul of its regulatory regulations.

The authorities said that it was necessary to overhaul the regulations as video games had started to become too violent. The gaming companies were also accused of producing games that led to myopia among the gamers, and which in some instances led to severe cases of addiction.

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