Tencent Holdings is reportedly exploring a potential acquisition of Nexon to bolster its gaming operations.

The Chinese company has initiated discussions with the family of Nexon’s late founder, Kim Jung-ju, regarding a possible deal, reported Bloomberg.

Nexon, established in South Korea in 1994 and listed in Japan in 2011, is known for popular role-playing games such as MapleStory.

Tencent and Nexon have previously collaborated on projects, including the co-development of Dungeon & Fighter, which has been a major source of revenue.

The Kim family holds their stake in Nexon through NXC, which owned 44.4% of Nexon as of 30 June, according to Nexon’s interim report. Kim’s wife and daughters control approximately 67.6% of NXC.

While the family is consulting advisers to evaluate their options, it remains unclear how open they are to selling their Nexon stake, and there is no guarantee that Tencent’s discussions will lead to a transaction, the report said.

This move follows Tencent’s previous attempt to acquire Nexon in 2019 and coincides with other investments in South Korean assets.

In late May 2025, a Tencent subsidiary agreed to purchase a nearly 10% stake in Seoul-based music producer SM Entertainment, aligning with the easing of an unofficial ban on K-pop in mainland China.

In March, Tencent also committed €1.16bn ($1.3bn) for a 25% stake in a new Ubisoft unit holding intellectual property rights, including those for Assassin’s Creed.

In 2024, Tencent cancelled its mobile game based on Square Enix’s Nier franchise after two years of development, citing monetisation challenges amid high costs and franchise rights issues.