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South Korea’s Kakao considers $9bn Nexon bid

Potentially one of the companies biggest acquisitions
South Korea’s Kakao considers $9bn Nexon bid
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South Korean publisher and chat app giant Kakao has confirmed that it’s reviewing a bid for rival games company Nexon.

It’s not clear exactly what Kakao wants from any deal, though it would certainly represent a significant expansion of its games business.

Growing concerns

According to The Financial Times, local media reports that there are concerns within the Korean games industry that Nexon will be taken over by a foreign company.

Should that be a firm like Tencent, which is also said to be in the running to acquire the publisher, it would increase China’s already strong influence over the country’s sector.

Last month it was revealed that Nexon founder Kim Jung-ju is looking to sell his controlling stake (98.64 per cent) in the company, believed to be worth around $8.9 billion.

A number of suitors have been touted, including South Korean Lineage II publisher Netmarble, which has thrown its hat into the ring. It’s worth noting that Tencent already has stakes in both Kakao and Netmarble.

Kakao Games has made a number of investments in the last year, with $16.8 million pumped into esports developer Neptune.