Chinese tech and gaming giant Tencent Holdings is reportedly exploring a potential $15 billion acquisition of South Korea's Nexon Co., according to sources familiar with the matter cited by Bloomberg.

Potential Deal Under Scrutiny

Sources indicate Tencent has approached the family of Nexon's late founder, Kim Jung-ju, who are currently evaluating options for their controlling stake. Neither Tencent nor Nexon has officially commented on the discussions, and the outcome remains highly uncertain. This follows a failed attempt in 2019, where Tencent reportedly bid approximately RMB 90 billion for Kim's 98.64% stake in NXC Corp., Nexon's parent company.

Following Kim Jung-ju's passing in Hawaii in 2022, his wife and two daughters inherited his NXC shares. The family subsequently transferred some NXC shares to the South Korean government to settle inheritance taxes and sold treasury shares worth 650 billion won ($478 million) back to NXC in August 2024. As of June 30, 2024, the Kim family, via NXC Corp. and affiliate NXMH BV, holds approximately 44.4% of Nexon, with Kim's widow and daughters owning about 67.6% of NXC.

Strategic Value and Longstanding Partnership

A successful acquisition would significantly bolster Tencent's dominance in the South Korean gaming market, granting it stakes in five major players: Netmarble, Nexon, Krafton, NCSoft, and Shift Up. Crucially, it would secure full control over Nexon's powerhouse franchises, notably the Dungeon & Fighter (DNF) series.

Tencent and Nexon share a nearly 20-year partnership, bringing major Nexon titles like Dungeon & Fighter, KartRider, Crazy Arcade (Bubble Fighter), and MapleStory to massive success in China. Recent hits like Blue Archive, Dave the Diver, and The Finals further demonstrate Nexon's strong development and publishing capabilities.

The DNF series remains central to their collaboration. The mobile title Dungeon & Fighter: Origin (DNF Mobile) has consistently topped Chinese charts since its 2024 launch. During Nexon's Q1 FY2025-26 earnings call, executives highlighted a new co-development agreement with Tencent for DNF in China, emphasizing deeper localization to boost sales. This partnership contributed significantly to a reported 60% year-on-year growth for the DNF franchise.

Furthermore, Nexon's reveal of Arad: The Open World, a new anime-style open-world game based on the DNF IP at The Game Awards 2024, represents a valuable potential addition to Tencent's anime game portfolio. Nexon subsidiary Embark Studios also entrusted Tencent with publishing The Finals and ARC Raiders in China, granting customization rights for local players.

Tencent's Global Gaming Ambitions Accelerate

This potential move follows Tencent's recent €1.16 billion (RMB 9.1 billion) investment in a new Ubisoft subsidiary, announced on March 28, 2025. That deal, expected to close by late 2025, grants Tencent a 25% stake in a company housing major Ubisoft IPs (Assassin's Creed, Rainbow Six, Far Cry) and 3,000 transferred staff. The subsidiary will focus on developing live-service, multiplatform games, including mobile titles, targeting markets like China – aligning perfectly with Tencent's expertise. Ubisoft CEO Yves Guillemot hailed it as a "milestone," while Tencent President Martin Lau emphasized strengthening the long-term partnership.

Consolidating Power

Acquiring Nexon would represent a monumental step in Tencent's strategy to solidify its position as the world's preeminent gaming powerhouse. Gaining direct ownership of Nexon's extensive catalog, proven development talent, and deep-rooted Korean market presence would significantly enhance Tencent's global content pipeline, development influence, and revenue streams.