Tencent denied rumors of its interest in Nexon
The Chinese giant Tencent is not planning to buy Nexon. The company informed Reuters that the rumors about their intent to strike a deal are not true.
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Plans for Tencent to acquire Nexon were reported last week by Bloomberg, citing its sources. It claimed that Tencent had contacted the heirs of the late founder of the South Korean holding company, Kim Jung-ju, who own a significant stake, and proposed discussing a sale.
Soon after Bloomberg's report, one of the South Korean gaming associations — the Korea Game Society — spoke out against the potential deal between Tencent and Nexon. They believe that Nexon's sale would lead to a Tencent monopoly in the South Korean gaming market, ultimately posing a threat to national security.
Amid the rumors, Nexon's market value increased. In a single day, it surged by more than a billion dollars, reaching $16.3 billion.
How Nexon’s stock value changed over the month