Tencent Reconsiders Nexon Deal to Boost Gaming Portfolio

The move follows the Chinese tech conglomerate's push into Korean assets, including the stake in SM Entertainment

- Bloomberg

Tencent Holdings Ltd is studying a potential deal involving Nexon Co., as China's internet giant looks for ways to bolster its lucrative gaming operations, people in the know of the matter said. Shenzhen-based Tencent has reached out to the family of Nexon's late founder Kim Jung-ju to discuss the possibility of an acquisition, the people said, asking not to be identified as the information is private. Kim's family is speaking to advisors and evaluating the options, the people added.

Kim's relatives hold stakes through its family investment firm NXC Corp., that together with affiliated unit NXMH BV, owned 44.4% of Nexon as of 30 June, show Nexon's interim report. Kim's wife and daughters own about 67.6% of NXC. It's unclear how receptive NXC is to a sale of the Nexon holding, and there's no certainty Tencent's deliberations will lead to a transaction, the people said. The structure of any deal hasn't been finalized, they added.