(ATTN: UPDATES with comments by CJ official and aspects in paras 7-14 Adds photo)
SEOUL, Oct. 26 (Yonhap) — South Korea’s best on-line portal operator Naver and amusement and logistics giant CJ Group signed a share-swap offer Monday in a strategic tie-up to enhance their aggressive edge in the e-commerce and entertainment industries, officers claimed.
Underneath the deal worthy of 600 billion gained (US$531 million), Naver will purchase a 7.85 percent stake in CJ Logistics Corp., a parcel delivery enterprise, a 5 p.c stake in enjoyment large CJ ENM Corp. and a 6.26 per cent stake in Studio Dragon, a drama manufacturing company owned by CJ ENM.
In return, Naver designs to give stakes with the identical financial value to the a few CJ models. The stakes in Naver to be held by CJ Logistics, CJ ENM and Studio Dragon are .64 %, .32 % and .32 %, respectively.
The share swaps in between Naver and CJ Logistics and CJ ENM are established to consider put on Tuesday, whilst just one involving Studio Dragon is expected to get about two months, the organizations mentioned.
The shift is intended to set up a new cooperative product in content material and e-commerce marketplaces and bolster their competitive edge from the inflow of foreign rivals, this sort of as U.S. streaming large Netflix Inc.
As of May well, Netflix held the most lively cellular application customers among more than-the-leading (OTT) companies in South Korea at an estimated 6.37 million in a state with a inhabitants of 51 million, according to marketplace researcher Nielsen KoreanClick, significantly bigger than community participant Wavve at 3.46 million and Seezn at 2.36 million.
Naver claimed it plans to unveil globally aggressive written content in cooperation with CJ ENM, the production house powering Oscar-winning “Parasite,” and Studio Dragon, which designed the well known drama “Guardian: The Lonely and Good God.”
Naver mentioned they will make investments 300 billion won around the subsequent 3 a long time to generate content for world-wide audiences amid the increasing level of popularity of “hallyu,” the Korean wave of pop lifestyle.
K-pop and the broader Korean Wave have resonated with young people all over the globe, burnishing South Korea’s graphic as a great place, home to K-pop phenomenon BTS and “Gangnam Style,” South Korean rapper Psy’s 2012 mega-strike song.
A CJ formal explained the cooperation in between CJ and Naver could more broaden Korean information in worldwide marketplaces, citing CJ’s potential to produce and create top rated-notch information and Naver’s original material in webtoon and webnovel.
Line Webtoon, the webcomic arm of Naver, noticed the variety of its regular active consumers surpass 67 million globally in August.
Naver Webtoon, a lot more usually regarded as Line Webtoon in the United States, is household to a myriad of creator-owned content material, ranging from romance to fantasy.
Naver also ideas to obtain a stake in tving, a subscription-dependent video-on-demand from customers services that was a short while ago spun off from CJ ENM in a transfer to bolster competitiveness towards Netflix.
Also, Naver and CJ Logistics program to broaden achievement companies for e-commerce and jointly devote in logistics infrastructure, officials said.