The South Korean MMO giant Nexon is currently up for sale. After some Asian companies, alleged Western firms are now in the running: Electronic Arts and Amazon are said to have made bids. It concerns over 9 billion US dollars.
This is the company in question: The Nexon Corporation is one of the largest online gaming companies in the world. They distribute MMORPGs such as MapleStory, Dungeon Fighter Online, or Vindictus.
In recent years, Nexon has increasingly focused on mobile MMOs. With the games, a fortune can currently be made in Asia, and the forerunners there are building huge headquarters.
In early January 2019, rumors emerged that the company’s head, Kim Jung-Ju, was planning to exit. The rumors intensified by the end of January. Since then, blood is in the water, and the question is really only: Which financially strong shark will grab this delicacy.
Why this is important: The sale concerns over 9 billion US dollars. Whoever buys Nexon will instantly become a major player in the gaming sector.
Now, the first bidders are known.
Koreans want to buy Nexon themselves “National Matter”
Who wants to buy the company? On February 21, it was reported that several South Korean companies had already made their bids:
- Netmarble – a Korean company specializing in mobile MMOs
- Kakao – the publisher behind Black Desert, a large Korean tech company
- a “private equity fund” named MBK Partners, based in South Korea
- and the US funds KKR & Co Inc, TGP Capital Management LP, and Bain Capital are also said to have made their bids
Allegedly, the Korean providers say that Nexon would be an important national issue for South Korea and should therefore preferably remain in the hands of a Korean company.
This was reported by Reuters, citing the Seoul Economic Daily.
Overnight to a major player in gaming
These are the new bidders: Now, according to reports from South Korean media, three more companies have made their bids:
- Amazon – the shipping giant
- Electronic Arts – one of the largest Western game publishers
- and Comcast Corp – a major cable operator from the USA
The ironic thing here is that in 2012, rumors circulated that Nexon itself was planning to swallow Electronic Arts.
Is all this confirmed? All involved companies decline to comment to the news agencies.
The information is based on “insider sources”. The actual sale is expected to be finalized in July 2019.
At the end of January, bids from Tencent, Activision, Electronic Arts, and Disney were expected – so far, apparently only Electronic Arts has shown up from the four.
This is what an analyst says: The site Venture Beat quotes the analyst Mike Vorhaus. He says:
- EA could close some major gaps in the company on a large scale with Nexon
- For Comcast, gaming is a better growth business than TV and movies
- and Amazon would overnight become a major player in gaming, especially on PC and in mobile games
If Nexon had to be sold to Netmarble due to influence from the Korean government, one would not get the full value out, believes the analyst.
Why is the company being sold? Allegedly, the founder of Nexon is tired. He was recently held accountable by the state due to an affair. Kim Jung-Ju was acquitted of the allegations, but it has apparently weighed on him.
