Leading domestic platform companies Naver and Kakao are transforming into global entertainment giants. Both companies have acquired overseas web novel and webtoon platforms in succession, aiming to dominate not only the domestic but also the international content markets based on these platforms. In particular, attention is focused on the fierce competition between the two companies in the global market.
Strengthening Global Influence through Acquisition of Tapas and Radish
Kakao's subsidiary Kakao Entertainment (Kakao Enter) announced on the 11th that it held a board meeting on the 7th and resolved to acquire the North American webtoon platform 'Tapas' and the web novel platform 'Radish.' In this acquisition, the value of the two platforms was estimated at $510 million (about 600 billion KRW) and $440 million (about 500 billion KRW), respectively. Through this acquisition, Kakao Enter secured 100% of Tapas' shares. In the case of Radish, a tender offer (public purchase) will be conducted within this month to finalize the acquisition.
Tapas, which Kakao Enter has long worked to acquire, was established in 2012 in San Francisco, USA, as the first North American webtoon platform, and its sales grew fivefold compared to the previous year. Kakao Enter had maintained a cooperative relationship with Tapas and incorporated it as an overseas affiliate last November.
Radish is a mobile-specialized English novel content platform established in 2016 in New York, USA. Since 2019, it has produced hit works through its own production content 'Radish Originals' based on a collective creation system, showing a steep growth trend with sales increasing more than tenfold last year.
Lee Jin-su, CEO of Kakao Enter, said, "Kakao Enter's IP business capabilities and know-how combined with the insights of Tapas and Radish, which have experience in the North American market, have created greater competitiveness," adding, "We plan to further accelerate the expansion of the global platform network."
Synergy between Global No.1 Naver Webtoon and Wattpad
Naver also announced on the same day that it has completed the acquisition process of the world's largest web novel platform, 'Wattpad.' Naver acquired 100% of Wattpad's shares for $600 million (about 670 billion KRW). Going forward, it plans to lead a new content ecosystem as a storytelling platform combining the No.1 webtoon and web novel platforms.
According to Naver, combining Wattpad (94 million users) and Naver Webtoon (72 million users) results in approximately 166 million users, as well as the largest number of creators and creative works worldwide. There are about 5.7 million creators and about 1 billion creative works.
Naver plans to apply various business know-how to Wattpad and officially embark on its journey as a global company. First, based on Naver Webtoon's intellectual property (IP) business know-how and monetization models, Wattpad's platform and business model will be advanced. In 2013, Naver introduced the PPS (Page Profit Share Program), which connects paid viewing, advertising, and IP business. This know-how will also be applied to Wattpad.
Various businesses utilizing webtoon and web novel IPs are also expected to unfold. The two companies will continue discussions on webtoons being adapted into web novels and web novels being adapted into webtoons. Collaboration between Studio N, which operates video businesses, and Wattpad is also anticipated. As of this year, a total of 167 video projects, including dramas, movies, and animations (90 from Wattpad and 77 from Naver Webtoon), are underway.
Han Seong-sook, CEO of Naver, said, "We expect the synergy between webtoons and Wattpad to grow even stronger through this acquisition," adding, "Naver will grow into an important player in the global entertainment market based on storytelling platforms like webtoons and Wattpad, which are beloved by Generation Z."
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