Nexon Bidding Postponed Due To "High Acquisition Price" That Even Tencent Is Reluctant To Pay

Is there a limit to how much Tencent is willing to pay to acquire Nexon? The answer appears to be "yes."

The Korea Times is reporting that the May 15 deadline for final bids for the company that holds a majority share in Nexon has been extended yet again, due in large part to the "high acquisition price," which even the biggest gaming companies in the world are balking at. Estimated at 10 trillion won, or about $8.4 billion, the high sale price "is a huge amount of money even for Tencent," said one investor.

In addition to Tencent, Kakao and Netmarble have been active in talks to acquire Nexon, though each has only about two trillion won available, according to The Korean Times. This is apparently forcing Netmarble to create a consortium with private equity firm MBK Partners, and possibly attract overseas investors, if it wishes to continue in the bidding process.

The bidding deadline has been moved to the end of the month, though it wouldn't be surprising at this point to see it postponed again as all sides seek the best possible deal.