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South Korea’s major entertainment firm CJ ENM Co. under CJ Group is seeking to merge its over the top (OTT) platform “Tving” with the country’s telecom giant KT Corp.’s “Seezn” to become the country’s No. 1 OTT platform with an estimated 5.6 million subscribers.
According to KT and CJ on Tuesday, KT Studio Genie and Tving will hold a separate board meeting on Thursday this week to discuss the integration plan and decide on the merger. Seezn is expected to be placed under Tving after the anticipated merger, according to experts. Details like the capital ratio have not been disclosed.
If unified, it would be the second merger and acquisition case in the Korean OTT market since the marriage of SK Telecom’s Oksusu and Pooq, a joint video-on-demand platform of Korea’s terrestrial broadcasters KBS, MBC and SBS in 2019.
The union is also expected to up their combined customer base to 5.6 million, exceeding 4.24 million of the country’s current No. 1 OTT platform Wave. KT’s paid mobile subscribers totaled 22.3 million as of the first quarter, with monthly new subscribers of an estimated 400,000. If KT provides the newly integrated app in its basic application bundle, users will be further expanded.
The two companies have discussed alliance on OTT and content business since the launch of a joint committee early this year. In the process, CJ ENM made a 100 billion won ($76.4 million) strategic investment in KT Studio Genie that wholly owns Seezn.
The latest decision came out to strengthen their content competitiveness
“In 2019, mobile carrier SK Telecom led the platform integration as the controlling stockholder but this time, content provider CJ ENM’s Tving will lead the unity, showing the changed status of the content business,” said an industry official.
CJ ENM shares rose 6.93 percent to close at 103,400 won in Seoul trading on Wednesday, while KT shares ended down 0.27 percent at 37,150 won.
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
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