Hyundai HCN Main Bid 'D-Day'... Skylife vs. SKT Showdown

[Asia Economy Reporter Koo Chae-eun] The main bid for cable TV company Hyundai HCN will be held today, the 15th. The competition is unfolding as a 'two-way battle' between KT Skylife and SK Telecom, while LG Uplus may not participate due to a lack of funds.

According to the broadcasting and telecommunications industry on the 15th, Hyundai Department Store Group and Credit Suisse (CS) plan to close the main bid for the sale of Hyundai HCN around 2 p.m. today and select a preferred negotiation partner, notifying them around the 24th. Three companies, including SK Telecom and LG Uplus, which submitted preliminary bid proposals, are likely to participate in the main bid.

There is intense jockeying over the acquisition price. Hyundai Department Store insists on receiving more than 500 billion won, but companies participating in the preliminary bid mention figures in the range of 400 to 500 billion won. Hyundai HCN had 1.34 million subscribers last year, accounting for a 3.95% market share. It has a business base in areas such as Seocho and Dongjak in Seoul, and its average revenue per user (ARPU) is high, recording an operating profit of about 70 billion won last year. The workforce consists of about 430 employees, with around 20 remaining at Hyundai Futurenet and the rest expected to move to Hyundai HCN with employment succession.

All three major telecom companies participated in the preliminary bid, but the market expects the M&A structure after the main bid to likely be a competition between SK Telecom and KT Skylife. KT Skylife is aggressively pursuing independent survival amid a decline in subscribers in its main satellite broadcasting business. SK Telecom, ranked third in the paid broadcasting market among the three telecom companies, has a strong incentive to acquire in order to improve its ranking.

Who acquires Hyundai HCN is expected to cause a significant shift in the paid broadcasting market share rankings among the three telecom companies. The current paid broadcasting market shares are ▲ KT (including KT Skylife) 31.31% ▲ LG Uplus (including LG HelloVision) 24.72% ▲ SK Broadband (including T-Broad) 24.03% ▲ D'Live 6.1% ▲ CMB 4.7% ▲ Hyundai HCN 4.1%.

This content was produced with the assistance of AI translation services.