[Alpha Biz=(Chicago) Reporter Kim Jisun] Tving and Wavve are reportedly seeking a merger. If the merger succeeds, it will be reborn as the largest online video service (OTT) in Korea.
According to related industries on the 30th, Tving parent company CJ ENM and Wavve parent company SK Square are expected to sign a memorandum of understanding (MOU) for the merger of Tving and Wavve as early as this week. The MOU will not be signed until early next week at the latest. The largest shareholder of the merged company is expected to be CJ ENM.
The main contract is expected to be signed next year after due diligence. The goal is to finalize the merger by the end of next year. However, the two sides said that it is true that they are discussing ways to cooperate, including mergers, but the conclusion of the MOU and merger are not yet confirmed.
If the negotiations are concluded smoothly, the merged company will become the No. 1 OTT operator in Korea. Tving has 5.1 million monthly active users (MAU) and Wavve 4.23 million. If the merger succeeds, the total MAU is expected to reach 9 million.
Excluding multiple subscribers, it will be able to surpass the native OTT 1-ranked Coupang Play (5.27 million), as well as the overall OTT 1-ranked Netflix (11.37 million).
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
