'The birth of a giant native OTT has crossed the peak of the 9th. The Fair Trade Commission approved the conditional merger of domestic OTTs Tving and Wavve on the 10th. However, the Fair Trade Commission's approval does not mean 'merger.' For the actual merger of Tving and Wavve to take place, discussions among all shareholders of both companies are necessary.
CJ ENM, the largest shareholder (48.9%) of Tving, is leading the merger of Tving and Wavve, but KT (KT Studio Genie), which holds 13.5% of Tving's equity, has not made a clear decision regarding the merger, whether in favor or against. Additionally, most major shareholders of Tving and Wavve have reportedly expressed their intention to merge.
SK Square holds 40.5% of Wavve's equity, while the remaining shares are equally held by the three terrestrial broadcasters KBS, MBC, and SBS at 19.8% each.
On this day, the Fair Trade Commission approved the merger of Tving and Wavve under the condition that they maintain the current rate levels until next year. This approval was in response to CJ ENM and Tving's application for 'merger review of firms with concurrent executives,' which allows five of the eight directors of Wavve, including the CEO, to concurrently serve as employees of their company.
Native OTTs Tving and Wavve signed a memorandum of understanding for a merger in December 2023 to compete against global leader Netflix. However, as the merger has been delayed, they embarked on a 'merger of firms with concurrent executives' strategy rather than typical corporate mergers such as stock acquisitions. This choice is interpreted as a strategy due to KT, a major shareholder of Tving, not clearly stating its position in favor or against.
KT stated, 'As a major shareholder of Tving, we are reviewing whether the merger of Tving and Wavve will enhance shareholder value,' adding, 'We will express our opinions in a way that is beneficial.'
CJ ENM plans to lead the merger of Tving and Wavve after discussions with shareholders. CJ ENM noted, 'Most shareholders have agreed to the merger to stimulate the growth of the K-content ecosystem, which is facing growth limitations,' and stated, 'We will seek shareholder consent through discussions.'
Meanwhile, the Fair Trade Commission, in its review of the corporate merger between Tving and Wavve, judged that there are some concerns regarding substantial competition restrictions in the OTT market, and set the condition that the two companies must maintain their current pricing plans until December 31 of next year. Even if Tving and Wavve launch an integrated service, they must release pricing plans that are similar to current prices and service levels, and maintain them until December 31 of next year.