Seoul: A senior official of KT Corp., a major South Korean telecommunications company, has expressed concerns over a planned merger between two local streaming platforms, Tving and Wavve. The official indicated that the deal could potentially undermine shareholder value.
According to Yonhap News Agency, Kim Chae-hee, head of the KT media division, addressed the issue during a press conference. "KT's investment in Tving was not simply a financial move, but was a strategic partnership aimed at creating strong business synergy in the media industry," Kim stated. She further expressed that the sense of cooperation or shared value has weakened and questioned whether the merger aligns with the interests of Tving's shareholders. This marks KT's first official comment on the merger, led by CJ ENM Co. and SK Square Co., the respective owners of Tving and Wavve.
KT holds a 13 percent stake in Tving through its content service subsidiary, KT Studio Genie. Despite the significant stake, KT had remained silent on the matter since the merger talks began in late 2023.
CJ ENM and SK Square have been advocating for the 250 billion-won (US$175.2 million) merger plan, which is largely seen as a strategic move to counter the growing competition from global streaming giants like Netflix. Netflix currently dominates the South Korean streaming market with a market share of about 40 percent. In contrast, the merged Tving-Wavve platform is projected to control around 35 percent of the local market.