Nexon is a large online game company with more than 3,400 employees based in Korea, US, Japan, and Luxembourg. Nexon pioneered the free-to-play business model for online games that many companies are quickly adopting for their games. Nexon’s games, mostly played in Asia, are more immersive and complex than your typical “FarmVille.” The company makes money by charging for virtual items and experiences in its games. In 2011, it earned 25.7 billion yen ($256.9 million) and revenue of 87.6 billion yen ($1.13 billion).
EA shares are responding to the rumor as shares have spiked $1.22, or 8.1%, to $16.23. Stocks have been trading close to a 52-week low, as EA continues to struggle through a transition to switch more of its business to digital distribution and away from the traditional shrink-wrapped console game market.
Nexon is larger than EA but not by much. EA’s market cap is about $5.3 billion. Nexon, which trades on the Tokyo Stock Exchange, has a market capitalization of about $8.5 billion. With that said, if Nexon attempts to acquire EA, its going to be a tough battle.