Chinese and South Korean publishing giants Tencent and Netmarble have formed a consortium as both companies look to acquire games developer Nexon, according to The Korea Times.

The consortium also consists of private equity firm MBK Partners. Reports indicate that a preliminary bid for Nexon will be made official as soon as February 21st, 2019.

Tencent already has ties with Nexon having partnered on distribution rights for online beat ’em up title Dungeon Fighter Online in China.

Official bid incoming

Industry analysts believe Tencent is likely to take ownership of Nexon due to the company’s cash reserves, which are estimated at $100 billion.

It was revealed in January that Nexon founder Kim Jung-ju was looking to sell his controlling stake (98.64 per cent) in the company. The amount is reportedly worth around $8.9 billion.

Since then numerous firms have shown interest in purchasing the Tokyo-based company, which has strong roots in South Korea. Amidst the interest, there are concerns that a Chinese company like Tencent would pick up Nexon, further solidifying China’s influence on the local market.

South Korean publisher and chat app giant Kakao were also said to be considering a bid for Nexon.