TVING merges with KT Season... Accelerating the global 'K-Content Platform'

First Major M&A Initiative Since TVING's Independent Launch
Strengthening Media-Content Collaboration, Launching Partnership Products
Becoming the No.1 Domestic Native OTT Operator Through Comprehensive Synergy

[Asia Economy Reporter Lim Hye-seon] CJ ENM's online video service (OTT) TVING announced on the 14th that it has decided to absorb and merge KT's OTT service Season. This is the first merger and acquisition (M&A) since TVING's independent launch. The plan is to expand influence not only in the domestic market but also in the global OTT market through comprehensive synergies such as the content competitiveness of both companies and the combination of OTT and telecommunications.

TVING and KT each held board meetings on the same day and resolved the merger plan between TVING and Season. According to this merger decision, the existing original content production capabilities and OTT technology will be combined with KT Season's business organization to further enhance technology and services. The merger method is for TVING to absorb and merge Season. KT Studio Genie, which holds 100% of KT Season's shares, is expected to acquire shares of the merged corporation and secure the position of the third-largest shareholder. The scheduled merger date is December 1.

This merger was carried out as part of the business cooperation between CJ ENM and KT in the first half of this year. In March, both companies signed a memorandum of understanding (MOU) and announced a strategy to strengthen their partnership in the media and content market. Following CJ ENM's investment of 100 billion KRW in KT Studio Genie, they plan to strengthen cooperation to continuously create synergies in various fields.

Since its independent launch as a separate corporation from CJ ENM in October 2020, TVING has grown its competitiveness by attracting investment from Naver, which owns various original intellectual properties (IP) such as webtoons and web novels, in June last year, following JTBC's joining. Starting with its first original content "Girls' High School Mystery Club," TVING has enhanced its competitiveness through a unique original content strategy including titles like "Seoul Check-in" and "Yumi's Cells." Additionally, it is strengthening its service technology through live broadcasts of various sports events such as soccer, UFC, boxing, tennis, and concerts.

Based on its unique original content and technological capabilities, TVING has shown rapid growth in paid subscribers, successfully attracting investments worth 250 billion KRW, and has been recognized for its high corporate value approaching 2 trillion KRW. Recently, it has been strengthening strategic cooperation with global entertainment company Paramount through the 'Paramount+ brand zone,' original co-productions, and content investments.

KT's Season is an OTT service that offers diverse content including live broadcast channels, the latest movies, popular overseas series, TV replays, and differentiated original content that can only be enjoyed on Season.

With this merger, TVING plans to actively pursue high-quality content production and exchange, diversified distribution strategies, and enhancement of viewing quality services to grow into a 'Global K-Content Platform.'

Yang Ji-eul, CEO of TVING, said, "The meeting of TVING and KT Season is to actively respond to the development of the K-content industry, which has recently strengthened its global status, and changes in the OTT ecosystem. Through the content production infrastructure and telecommunications technology of both companies, we will leap beyond Korea to become a 'Global K-Content Platform.'"

Yoon Kyung-rim, Head of KT Group Transformation Division (President), said, "This integration was decided to secure faster competitiveness in the domestic media and content market, which has become a battleground for global OTTs and a key content supplier." He added, "As original content such as 'Extraordinary Attorney Woo' has recently been successful and gained confidence, KT Group will focus its capabilities on content business utilizing the media value chain going forward."

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