Shenzhen-based Tencent has contacted the family of Nexon’s late founder Kim Jung-ju to discuss a possible acquisition, according to people familiar with the matter, who requested anonymity because the information is confidential. Kim’s family has been communicating with advisers to evaluate various options, according to people familiar with the matter.
Kim’s relatives hold shares in Nexon through family investment company NXC Corp (NXC). As of June 30, NXC Corp and its affiliate NXMH BV held a total of 44.4% of Nexon, according to Nexon’s interim report. Kim’s wife and daughter hold about 67.6% of NXC Corp.
It is unclear how receptive NXC is to selling Nexon shares, and it is uncertain whether Tencent’s deliberations will lead to a deal. They added that the specific structure of the transaction has not yet been finalized.
Representatives for Tencent did not respond to requests for comment, while Nexon and NXC declined to comment.
Nexon, known for role-playing games such as MapleStory, was founded in South Korea in 1994 and listed in Japan in 2011 in one of the largest tech-related initial public offerings (IPOs) at the time. Nexon shares have risen more than 10% this year on the Tokyo Stock Exchange, giving it a market value of about $15 billion.
Changes in the ownership structure after Kim Jong-un’s death in 2022 could complicate any deal. To pay inheritance taxes, Kim’s family transferred its stake in NXC Holdings to the South Korean government in 2023.
Kim’s wife and two daughters inherited his stake in NXC after his death in Hawaii. The family also sold NXC treasury shares back to the holding company in August for 650 billion won (about $478 million).
The South Korean government has been trying to sell its stake but has failed to find a buyer, according to local media reports.
Shares of rival game developers such as Ubisoft Entertainment Inc. (UBI.PA, UBSFY), GungHo Online Entertainment Inc. and Sega Sammy Holdings Inc. (6460.T, SGAMF) have all fallen this year. Although Nexon’s shares have risen in 2025, they are down nearly 30% from their 2021 peak.
NXC considered selling its Nexon stake six years ago, attracting the attention of Tencent and buyout firms such as KKR & Co. and Hillhouse Capital. The sale process was ultimately shelved after failing to agree on a price, Bloomberg News reported at the time.
Nexon and Tencent have collaborated on Dungeon Fighter, a key revenue source. In March, Tencent agreed to invest 1.16 billion euros ($1.3 billion) for a 25% stake in a newly formed Ubisoft subsidiary that owns the intellectual property rights to several games, including Assassin’s Creed.
Nexon’s first quarter net sales were approximately 114 billion yen and net income was 26 billion yen.
