SKB "Welcome Approval of TiBroad Merger, Will Enhance User Benefits"

[Asia Economy Reporter Kim Heung-soon] The government on the 21st gave final approval for the merger and acquisition (M&A) of SK Broadband (SKB), a subsidiary of SK Telecom, and Tbroad, the second-largest cable TV operator. SKB expressed its welcome and pledged to faithfully fulfill the merger conditions required during the review process.

On the morning of the same day, when the Ministry of Science and ICT announced the approval of the M&A between SKB and Tbroad, SKB issued a statement saying, "We welcome the final approval decision for this merger and acquisition and deeply thank all government departments that worked hard for the M&A review."

The Ministry of Science and ICT previously stated, "Based on the review results of the review committee held last year and the prior consent opinion of the Korea Communications Commission, we have decided on the corporate merger of SKB and Tbroad and the change of the largest shareholder of the comprehensive wired broadcasting operator (SO). We expect that this merger will provide new vitality to the domestic media industry through final approval, as it represents the voluntary restructuring efforts of businesses in response to market environment changes such as the growth of media conglomerates and the rise of online video services (OTT)."

Furthermore, the ministry added, "By imposing conditions on fair competition, user benefits, regional reinforcement, and employment stability during the review process, we minimized potential side effects caused by the merger of IPTV operators with comprehensive wired broadcasting operators (SO). We also imposed conditions related to content investment and win-win cooperation to contribute to the development of the media ecosystem."

In response, SKB stated, "This M&A was pursued to respond to the rapidly changing pay-TV market and strengthen media competitiveness. We will focus on developing innovative services to enhance user benefits in the future." It also pledged, "The merged corporation will make various efforts for the mutual development of the media industry, including IPTV and cable TV, lead the development of the domestic media market, and faithfully fulfill its public responsibilities as a pay-TV operator."