SBS recorded its upper limit after news of a content supply contract with Netflix.
As of 9:26 a.m. on the 23rd, SBS is trading at 26,000 won, up 30.00% from the previous trading day.
On the 20th, SBS announced that it had signed a strategic partnership contract with Netflix. Under the contract, SBS will supply some new dramas, entertainment, and educational programs, as well as some pre-contract broadcasting programs to Netflix. Some of the new content set to air in the second half of next year will be supplied overseas through Netflix. The contract period is six years, starting from January 1 next year.
In response, Hana Securities raised SBS's target stock price from the previous 20,000 won to 40,000 won. Research Institute Gi-hoon Lee noted, “The contract period of six years is the longest in the country” and described it as “an unprecedented contract in every aspect, including the global first to provide full broadcasting schedule.”
He also stated that the current market capitalization of SBS, which is just under 400 billion won, could soar to 1.5 trillion won. This Research Institute mentioned, “If applied optimistically, a market capitalization of 1.5 trillion won is a possible level, so it can be judged as a contract that could rise to 1 trillion won” and added, “As performance will be confirmed from the first quarter of next year, there are plans to further raise performance outlook thereafter.”