Fair Trade Commission Approves Naver's 'V Live' and HYBE's 'Weverse' Integration... Global Mega 'Fan Platform' Emerges

"Multiple Similar Service Platforms Exist... Low Concern for Competition Restriction"

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) has approved the integration of Naver's 'V Live' and HYBE's (formerly Big Hit) 'Weverse' fan platforms. This fusion combines Naver's platform technology with HYBE's strength in producing celebrity-related content, creating a global mega fan platform.

On the 13th, the KFTC announced that it judged there to be little concern over competition restrictions regarding the business acquisition and stock purchase merger between Naver and Weverse Company, and approved it on the 7th.

Earlier, on January 27 of this year, Weverse Company signed a contract to acquire the V Live business operated by Naver, while Naver acquired a 49.0% stake in Weverse Company, and on March 2, they reported the merger to the KFTC.

The KFTC determined that the integration of the two companies' online fan community platforms is unlikely to restrict competition in the related market. There are many platforms providing similar services, including online fan community platforms such as Universe (operated by NCSoft) and Lysn (SM Entertainment), as well as portal community services like Daum Cafe, social networking services (SNS), and YouTube, leading to intense competition among platforms.

Additionally, entertainment agencies tend to use multiple platforms simultaneously, a 'multi-homing' trend, allowing them to easily switch platforms. Since maximizing revenue for fan community platforms requires securing content from various celebrities, the KFTC judged that platform operators do not hold a transactional advantage over entertainment agencies.

A KFTC official stated, "Due to the global success of Korean popular culture such as K-POP, the scope of business in the domestic entertainment market has expanded from a domestic focus to overseas markets, and the economic value of related industries is rapidly increasing. Numerous mergers and acquisitions are taking place among companies active in the domestic entertainment market, such as this merger. While carefully examining the impact of these mergers on competition in the related markets, we will promptly approve cases without competition concerns to support active investment activities by companies."

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