Nexon is the largest MMO company in South Korea and is up for sale. The market leader could remain in Korean hands. According to the latest reports, one of the bidders for Nexon is the No. 2 in the South Korean market, Netmarble. They could become gigantic with the purchase.
What is for sale? The shares of Kim Jung-ju and his wife in the NXC Corp. are for sale. This is the parent company behind the Korean market leader in gaming, Nexon (Maple Story, Vindictus, Dungeon Fighter Online).
The shares amount to 98.64% and are worth about 11 billion US dollars.
After all, Nexon owns “Dungeon Fighter Online,” one of the most successful PC games in the world:
Why is it being sold? Kim Jung-ju reportedly wants to retire from business because he is tired of the growing regulations.
Recently, he was involved in a corruption scandal in which he allegedly bribed a childhood friend who then became a prosecutor.
Moreover, he does not plan to pass the company on to his children, as previous statements suggest.
Who has been in talks for Nexon? In recent months, there have been numerous rumors about who might snap up Nexon:
- Electronic Arts has been mentioned as a potential bidder
- China giant Tencent was believed to be capable of swallowing Nexon
- Amazon was in speculation
- Allegedly, Kim Jung-ju himself wished for Disney as a buyer. However, the company with the mouse reportedly declined.
However, none of these four corporations has apparently bid, according to the latest information.
In Korea, it was thought that Nexon should stay “in the country”.
Who has submitted bids? According to a news agency, there have been 5 bids, that has been learned from sources:
- Netmarble, the Korean mobile expert, and No. 2 in South Korea
- Kakao, which long stood behind the MMORPG Black Desert and distributes a well-known messenger app
- and 3 “Private Equity” firms: KKR & Co, Bain Capital, and MBK Partners. The investment funds have been on the radar for some time. MBK Partners are based in South Korea, the other two are US funds.
These are the 5 initial candidates that Reuters identified as potential buyers on February 21.
Tencent, which does not bid directly, holds shares in Netmarble (17.7%) and Kakao (6.7%).
The auction was reportedly concluded on May 31. All 5 potential bidders refused to comment.
What does this mean? Should Netmarble or Kakao win the bid, a gigantic player would emerge overnight, which likely also has ambitions in the West.
Netmarble is the big winner in South Korea in recent years with a full war chest from mobile hits. If they manage to swallow such a massive entity, it could set off significant changes. Despite this, the biggest mobile hits from Asia have struggled in the West so far.
For Kakao, which comes more from the tech side than from gaming, the acquisition of Nexon would surely be interesting. A purchase would surely change the market dynamics.
