[Exclusive] 1 Trillion Won Valuation 'Baby Shark' Ruby Button... Accelerating Nasdaq Move "Samsung Publishing Smiles"

Maximizing Revenue Generation Using SmartStudy IP
Nasdaq Listing Expectations Grow Stronger
Samsung Publishing Rises on Equity Value Effect

[Asia Economy Reporter Lee Seon-ae] 'Pinkfong Baby Shark' is expected to become the fourth in Korea to receive the honor of the 'Ruby Button.' Accordingly, the intellectual property (IP) value of Pinkfong Baby Shark is projected to reach 1 trillion won. SmartStudy is also expected to solidify its position as a unicorn company (a private company valued at over 1 trillion won), while Samsung Publishing (16.9%), the second largest shareholder, and KT (9.25%), the third largest shareholder of SmartStudy, are likely to benefit from the increase in value. The market is expressing anticipation for SmartStudy's planned listing on the U.S. Nasdaq.

As of the 22nd, Pinkfong! Kids' Songs & Stories has 49.7 million subscribers, soon to surpass 50 million. Just last weekend, the subscriber count increased by 100,000 from 49.6 million. The internal atmosphere at SmartStudy is reportedly very optimistic about the Ruby Button. The company expects to reach 50 million subscribers as early as this weekend or by early July at the latest.

The '50 Million Award,' known as the Ruby Button, is given when a YouTube channel reaches 50 million subscribers. In Korea, BLACKPINK was the first to receive the Ruby Button in September 2020. Following them are HYBE LABELS and the BANGTANTV channel. Considering all three channels are related to K-pop, Pinkfong’s Ruby Button holds significant meaning.

This is thanks to the globally popular Baby Shark. The 'Sing and Dance!' YouTube content of Baby Shark recorded the highest number of views worldwide at the end of last year. It was the first time a children's song topped YouTube video views. The value of the Baby Shark IP is expected to increase further. SmartStudy is expanding its IP into areas such as animation and theater to create additional value. It has collaborated with over 500 domestic and international companies including LG Electronics, Nongshim, Yanolja, Kellogg’s, Crocs, and Crayola, signing more than 2,000 licensing contracts in total.

SmartStudy is a content company founded in 2020 by former employees of the game company Nexon. Last year, it recorded sales of 67.7 billion won and an operating profit of 18.4 billion won. SmartStudy is the first domestic content company to become a unicorn. The largest shareholder is Kim Min-seok, son of Samsung Publishing CEO Kim Jin-yong. After working at Nexon and NHN, he joined Samsung Publishing at the end of 2008, overseeing digital content, and founded SmartStudy in June 2010. He currently holds 19.43% of SmartStudy’s shares as the single largest shareholder.

The second largest shareholder, Samsung Publishing, sold 45,757 shares (1.8%) of SmartStudy in January 2019 to secure cash. Recently, it also sold 40,000 shares of SmartStudy to an institutional investor for 13.1 billion won. Samsung Publishing’s stake decreased from 18.5% (454,243 shares) to 16.9% (414,243 shares). The market capitalization of SmartStudy, as valued in the secondary share transactions, is estimated at around 805 billion won. When domestic venture capitalists purchased secondary shares worth 10 billion won in 2019, the valuation was about 200 billion won, meaning the company’s value has quadrupled in two years. Considering ongoing new investments and the Ruby Button, the valuation is now expected to approach 1 trillion won. In particular, the market expects that following Coupang’s successful listing on the New York Stock Exchange, SmartStudy’s Nasdaq debut will accelerate.