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NHN Headquarters. (Photo = NHN) |
[Alpha Biz= Paul Lee] NHN’s planned divestment of its music streaming subsidiary NHN Bugs has been called off after the buyer failed to complete the final payment, dealing a setback to the company’s efforts to streamline its content business and improve operational efficiency.
NHN Bugs announced on March 27 that it had terminated the share purchase agreement, stating that “the acquirer (NDT Engineering and three other parties) failed to fulfill its obligation to pay the remaining balance.”
Earlier, on January 15, NHN had agreed to sell its entire stake in NHN Bugs—45.26% (6,711,020 shares)—to NDT Engineering, an automated non-destructive testing equipment company, and related parties for KRW 34.7 billion. NHN cited the divestment of non-core businesses and enhanced management efficiency as the rationale for the deal, while NHN Bugs had expressed expectations for synergies with new investors.
However, the buyer failed to pay the remaining KRW 31.23 billion by the original deadline of March 9. Although NHN extended the deadline once to March 26 in an effort to complete the transaction, the payment was ultimately not made, leading to the termination of the deal.
Following the collapse of the sale, NHN now faces renewed uncertainty over the future of NHN Bugs. Amid intensifying competition in the domestic music streaming market—driven by global platforms such as YouTube Music—the company will need to reassess the subsidiary’s strategic direction and demonstrate its business competitiveness and enterprise value.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
