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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] Shares of Naver rallied sharply, driven by market speculation that the company could acquire Woowa Brothers, the operator of Baedal Minjok. However, industry observers caution that the likelihood of such a deal remains low.
According to the Korea Exchange, Naver’s stock rose 5.71% on May 14 to close at KRW 213,000, rebounding after four consecutive sessions of decline. The surge was attributed to reports that Germany-based Delivery Hero, which has appointed JPMorgan as the sale advisor, recently distributed teaser letters for a potential stake sale, with Naver reportedly among the recipients.
Despite the market reaction, analysts say Naver is unlikely to pursue the acquisition, which is estimated to be worth around KRW 8 trillion. The company is currently focused on a merger between Naver Financial and Dunamu, limiting its financial flexibility.
Additionally, the complex stakeholder structure of food delivery platforms—including merchants, riders, and consumers—makes such acquisitions operationally challenging.
Delivery Hero is also said to have sent teaser letters to other global players, including Alibaba, DoorDash, and Uber.
Chinese firms are widely seen as leading contenders. Alibaba has already strengthened its foothold in South Korea’s e-commerce market through a joint venture with Shinsegae Group involving Gmarket and AliExpress Korea. Meanwhile, Tencent-backed Meituan is also viewed as a potential bidder, as it seeks to expand its food delivery network across Asia.
Delivery Hero is expected to pursue the sale to improve its financial structure. As of the end of last year, the company’s total debt stood at €6.17 billion (approximately KRW 9.25 trillion), with its debt ratio nearing 231%.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
