Naver Acquires World's Largest Web Novel Platform 'Wattpad' for 660 Billion KRW

[Asia Economy Reporter Buaeri] Naver has acquired the world's largest web novel platform, 'Wattpad.'

On the 20th, Naver announced that it would acquire 100% of Wattpad's shares for $600 million (660 billion KRW).

Wattpad is the world's largest platform with over 90 million users monthly spending 23 billion minutes. Over 1,500 works, including 'After,' have been published and adapted into films and videos.

Naver Webtoon has 72 million monthly users, making Naver the largest global storytelling platform operator with over 160 million users through Naver Webtoon and Wattpad.

Naver plans to expand its global content business through Wattpad's user base of 90 million across diverse cultures in North America, Europe, and more, and the 1 billion story contents created by 5 million creators.

Naver Webtoon can enhance Wattpad's business model by integrating its accumulated intellectual property (IP) capabilities. In 2013, Naver Webtoon created the PPS program (Page Profit Share Program), which leads to paid viewing, advertising, and IP business, and in 2014 launched global webtoon services in English, Chinese, and other languages, transforming webtoon content from a niche enthusiast market into a global industry.

Naver Webtoon is expected to develop various businesses through Wattpad. First, Wattpad's web novels can be adapted into webtoons. Especially since 80% of Wattpad users are Generation Z (born from the mid-1990s to early 2000s), Naver Webtoon can produce source content verified by the global Gen Z audience. Naver Webtoon has already validated the success potential of global webtoon adaptations based on web novels through titles like Reincarnation Queen and Omniscient Reader's Viewpoint.

It will also be possible to adapt Wattpad's content into videos. Wattpad owns Wattpad Studios, which develops global video projects, and together with Naver Webtoon's Studio N, it is expected that original content from Naver Webtoon and Wattpad can be adapted into video formats.

Kim Jun-gu, CEO of Naver Webtoon, said, "Through Wattpad, we have secured a more diverse range of global storytelling IP," adding, "With the synergy from Wattpad, the diversification capabilities of IP that Naver Webtoon already possesses will be strengthened, bringing us one step closer to becoming a world-class entertainment company."