The Korean gaming company Nexon is one of the major players in the MMO and MMORPG business with games like Maple Story and Vindictus. The company was reportedly up for sale, but allegedly there is no financially strong partner that the CEO approves of, according to new sources.
Here is the situation: Since January 2019, there have been rumors about the MMO and MMORPG giant Nexon, the largest gaming company in South Korea. The founder and owner of the company, Jungju Kim, is allegedly tired of many regulations and wants to sell his shares in the company. It is about approximately 9 billion US dollars.
The founder has been involved in a lawsuit that is said to have worn him down.
Allegedly, the CEO wanted to sell his company to Disney because he values it so much. However, they declined.
Remaining bidders include the South Korean competitors Netmarble and Kakao, as well as three investment funds. This was the current status as of early June.
Normally, one would have expected to hear in the past few weeks who exactly is buying the company, as the deadline for bids reportedly ended in late May.
There are many “allegedly” here because none of the involved companies officially comment on the details. However, the news has been moving stock prices for months.
This is the latest rumor: According to South Korean media, on June 26, it was learned from sources that the bidding rounds did not go well, and the acquisition has now been canceled:
- Kakao and the investment fund Bain Capital dropped out early because their bids were too low.
- None of the remaining bidders seem to please Jungju Kim, reports a source.
Netmarble is the only strategic partner and could not convince Nexon that they can raise that much money. The other two investment funds held back because rumors had arisen that Netmarble was planning an IPO to raise the funds for the Nexon acquisition.
Now it is said that the managers of the deal from UBS and Deutsche Bank will soon inform the bidders that the deal will not happen.
These were the effects: Nexon’s stock took a slight dip following the news, but has since recovered.
What games does Nexon operate? Nexon has nearly fully shifted its business for new releases to mobile. Among them is Durango, one of the best survival games for mobile.
Nexon distributes some of the most successful MMO games in Asia. Titles like Dungeon Fighter Online, Maple Story, or Sudden Attack hardly play a role in Europe.
