KT stated that the merger between TVING and Wavve does not align with the value of TVING's shareholders.
On the 16th, Kim Chae-hee, head of KT's institutional sector, said during a press conference held at the Andaz Seoul Gangnam Hotel in Gangnam-gu, Seoul, in response to reporters' questions about the merger of TVING and Wavve.
Kim noted, "From KT's perspective, the investment in TVING is not simply a financial investment, but rather a partnership made as a strategic investor considering the strong business synergy across the entire media business," and added, "I suspect that the willingness or value for business cooperation at that time has been greatly diminished. I think."
He continued, "Wavve's monopoly over terrestrial broadcasting content is weakening, and in this situation, I have doubts about whether the direction of growth pursued through the merger aligns with the value of TVING's shareholders."
SK Square, the largest shareholder of Wavve, and CJ ENM, the largest shareholder of TVING, are pushing for a merger between TVING and Wavve with a total joint investment of 250 billion won.
If the merger is successful, the combined company's share of the domestic online video service (OTT) market is expected to reach 32-35%, potentially allowing for comparable competition with Netflix (38-40%).
However, KT Studio Genie, which holds about 13% equity in TVING, has not disclosed its stance on the merger.
Kim stated, "Regardless of KT's intentions, the business combination notification has already been submitted, and we are on a path based on the merger premise, engaging in activities akin to merger effects in certain aspects," while also mentioning that "official communications with CJ are ongoing."