[Alpha Biz= Reporter Kim Jisun] SK Square and CJ ENM, spearheading the merger of domestic OTT platforms Wavve and TVING, announced a strategic investment of 250 billion KRW.
On the 27th, Wavve’s largest shareholder, SK Square, and TVING’s majority owner, CJ ENM, disclosed their respective investments of 150 billion KRW and 100 billion KRW in Wavve. Both companies will acquire newly issued convertible bonds (CBs) from Wavve as part of this investment.
The funds will allow Wavve to repay 200 billion KRW in maturing convertible bonds due on the 28th to its financial investors (FIs). Wavve, which raised 200 billion KRW from financial investors in 2019, faced financial difficulties after recording an operating loss of 80.4 billion KRW last year, leaving it unable to independently manage its debt obligations.
SK Square and CJ ENM emphasized that the strategic joint investment aims to enhance the synergies between Wavve and TVING’s OTT operations and strengthen their content competitiveness.
Wavve, with SK Square holding a 40.5% stake, is co-owned by major terrestrial broadcasters KBS, MBC, and SBS, which each hold 19.8%. Wavve provides exclusive OTT access to live and on-demand terrestrial TV content.
Following the strategic investment, SK Square and CJ ENM plan to pursue a corporate merger pending regulatory approval. While the post-merger OTT brand has not been finalized, sources suggest the name "TVING" is the most likely choice.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
