The 'big deal' that could crown a new second-largest shareholder of NXC, the holding company for Nexon, has officially kicked off. The list of potential bidders is already making rounds, including Tencent, which recently found itself at the centre of acquisition rumours regarding Nexon, along with Krafton and its deep pockets, not to mention various overseas gaming firms and private equity funds. With a staggering 4.7 trillion won price tag, the auction is drawing significant attention from all corners of the industry for a multitude of reasons.

While the field remains somewhat hazy, several other names are being tossed around in the rumour mill. However, looking back at the NXC stake sale attempt in 2019, industry heavyweights like NCSoft, Netmarble, and Kakao, who were once tipped as primary contenders, now seem unlikely to participate independently due to funding constraints. It is equally hard to imagine North American or European publishers jumping in, especially when they are currently preoccupied with cost-cutting and restructuring. As for the Saudi Public Investment Fund, which has been steadily increasing its stake in Nexon through investments, the fund has already signalled a 30% reduction in its overseas investment portfolio.

Should the auction face repeated failures, the price could theoretically be slashed by 10% each time, up to a maximum 50% discount. However, given that the Ministry of Economy and Finance has already accounted for approximately 3.7 trillion won—roughly 80% of the sale price—in its annual budget, a compromise around that figure seems far more likely. If no buyer steps up, we must also consider the provision allowing heirs to buy back shares accepted as tax payments at up to a 50% discount after two failed auctions. This implies that NXC could potentially reacquire the shares at a bargain price, though whether that changes the underlying situation is another matter entirely.

The Ministry of Economy and Finance has set the deadline for this NXC stake sale for August 25. Given that these are unlisted shares and that the stake offers little in the way of actual management control—leaving dividends as the only real path to profit—one has to wonder how many firms will actually be willing to dive into this particular 'big deal'.