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Tencent could buy games titan Nexon

Tencent could become an even bigger unstoppable force in the games industry.

@DeekeTweak
Published Thu, Jan 3 2019 4:15 PM CST   |   Updated Tue, Nov 3 2020 11:49 AM CST

South Korean gaming giant Nexon will soon be purchased by one of gaming's biggest earners.

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Nexon founder Kim Jung-ju plans to sell off his enormous 98.6% stake in the company, Reuters reports, effectively leading a major competitor to come in and take over the reins. The stake, which is worth a substantial $8.9 billion, sees only the industry's biggest players vying for the buyout. Bidders include Chinese juggernaut Tencent and even Electronic Arts.

Nexon represents a lucrative asset for any games-maker, especially Electronic Arts, whose mobile presence isn't as gigantic as Tencent's. Nexon is mostly known for making free-to-play mobile games like Dungeon Fighter and Maple Story that make millions every quarter. The company has made over $1.2 billion in its current fiscal year and sits as the top 11 earning publisher in 2018, according to analyst firm Newzoo.

The South Korean titan fits right into Tencent's monetization-focused wheelhouse and could further build up its reign across the games industry. Within six months Tencent has amassed $10 billion worldwide across its wide webwork of console, PC, and free-to-play mobile games, and adding Nexon's strong titles to its lineup would further bolster its yearly earnings.

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NEWS SOURCE:reuters.com

Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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