By Park Hyong-ki
Tencent could still be interested in acquiring Korea’s fastest growing game company, Bluehole, said sources familiar with the situation.
Tencent, China’s tech conglomerate, had reportedly offered to buy Bluehole just before the Korean company’s online video game “PlayerUnknown’s Battlegrounds” (PUBG) became a smash hit.
Bluehole was said to have rejected Tencent’s offer then.
However, as Bluehole has grown to become a 6 trillion won company, its shareholders may opt for a sale to Tencent, a source said.
This is because there are no other companies including local ones that have the capacity with a large war chest to acquire Bluehole than Tencent. Not even Nexon or NCSOFT could manage the acquisition, the source said.
Also, an initial public offering (IPO) of Bluehole is out of the question, not while Bluehole founder Chang Byung-gyu holds a government position as the chairman of the Fourth Industrial Revolution committee.
Chang is also the biggest shareholder with a 20.4 percent stake in Bluehole.
He will be politically scrutinized should he opts for Bluehole’s IPO as politicians will attack and accuse him of gaining wealth using his position, the first source said.
A sale to Tencent would less likely draw attention and criticism.
Also, with Korea and China moving to restore their relations amicably following a dispute over a U.S. anti-missile defense system, this would open the way for Chinese companies’ investment in Korea, and vice versa, another source said.
Tencent has been on a global buying spree, acquiring stakes in game companies including Riot Games, Epic Games and Blizzard.
Chang neither confirmed nor denied of Tencent’s possible interest in his game company, but only said Tencent was Bluehole’s Chinese publishing partner. Tencent could not be reached for comments.
Bluehole’s other key venture capital and private equity shareholders include K-Net Culture & Contents Venture Fund, Altos Venture and Stonebridge Capital.
After years being in the doldrums, Bluehole hit it big with PUBG, which boosted its over-the-counter (OTC) stock value to 6 trillion won from just 100 billion won late last year.
This surprise hit enabled K-Net Culture and Stonebridge to gain 20 billion won in incentives, the first source said.
Bluehole is Chang’s third company, and he is no stranger to exiting his company through a sale or an IPO, the sources said.
His first startup, Firstsnow, a search engine, was sold to Naver. His second one, Neowiz was listed on the KOSDAQ.