Tencent’s Bold Bid for Nexon Raises Eyebrows

By:Mollie Dominy
Tencent to purchase Nexon

Well, we have a report that Tencent is, once again, reaching into the proverbial pot of video game businesses for another piece of bacon. According to Bloomberg, Tencent has set its sights on acquiring Nexon, a company currently estimated at a hefty $15 billion (quite a few zeros in the wallet there).

Tencent is reportedly “studying a deal,” and the company is actively looking for “ways to bolster its lucrative gaming operations.”Bloomberg assures us this info comes straight from people familiar with the matter.

Nexon’s Rising Value Makes It a Prime Target

It honestly makes sense—Nexon has been doing well lately with a solid slate of recent releases, including The First Berserker Khazan and The First Descendant. Not to mention their majority ownership of Embark Studios, the team behind trending titles The Finals and ARC Raiders. So, trying to go with two for the price of one?

Right now, we’re in a wait-and-see phase. It’s unclear if Tencent will move forward or secure a majority stake in the company. But let’s be real—Tencent’s track record makes this move seem likely.

Could This Reshape the Industry?

Tencent has already teamed up with Ubisoft, participating in a major restructuring and forming a new subsidiary to house flagship franchises like Assassin’s Creed,  Far Cry, and Rainbow 6 Seige. Add to that their recent 15.75% stake in Arrowhead Game Studios, developers of Helldivers 2, and it’s clear they’re building an empire where they have a say in all major games going forward.

So, what does this mean for the gaming industry?

Are we looking at the start of a monopoly, or simply smart expansion? With reports of layoffs across both indie and AAA studios still coming in like bad news on Monday, some are concerned these acquisitions could lead to less creative freedom and more corporate consolidation.

What do you think? Is Tencent’s strategy of buying up hot studios good for gaming, or a red flag for the industry’s future?

 

Author

  • Mollie Dominy

    Mollie is an article writer and editor for Total Apex Gaming. She's loved playing and talking about games since she played her first game, Mortal Kombat, much to the dismay of those around her. She loves all forms of video games and uses her research skills to find out about every game she sees so that fangirling can commence.

Mollie is an article writer and editor for Total Apex Gaming. She's loved playing and talking about games since she played her first game, Mortal Kombat, much to the dismay of those around her. She loves all forms of video games and uses her research skills to find out about every game she sees so that fangirling can commence.

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