[Exclusive] Naver Plans to Acquire Yes24 for 700 Billion Won... Possibility of a 1 Trillion Won 'Mega Deal'

Naver's Full-Scale Entry into the Online Book Market
Yes24's Valuation May Rise as Kakao Bank Stock Surges

[Asia Economy Reporter Minwoo Lee] Naver (NAVER) is pursuing the acquisition of Yes24, the number one player in the online book market. The estimated price is around 700 billion KRW, but since the value of Yes24's stake in KakaoBank has been steadily rising, there are also projections that the transaction price could exceed 1 trillion KRW.

According to the investment banking (IB) industry on the 18th, Naver conveyed its intention to acquire Yes24 earlier this month. It proposed purchasing the entire 50.01% stake in Yes24 held by Hanse Yes24 Holdings for about 700 billion KRW. In response, Yes24 has requested advice from the foreign securities firm Credit Suisse (CS). A CS official explained, "We received a sales proposal from Naver to Yes24, and various documents have been exchanged as formal discussions are underway," adding, "Yes24 is also seriously reviewing this." CS previously acted as the lead manager when Yes24 attempted to sell part of its KakaoBank shares last April.

Although the initial sale price of Yes24 was set at around 700 billion KRW, there are expectations that it could increase further. This is because KakaoBank's stock price has been soaring daily, raising the value of Yes24's stake in KakaoBank. Yes24 currently holds a 1.39% stake (5,681,393 shares) in KakaoBank. Based on the KakaoBank stock price of 91,300 KRW recorded at 9:38 AM that day, the value of Yes24's stake alone exceeds 600 billion KRW. Considering that Naver's proposal was made just before KakaoBank's listing, the valuation of the stake has increased by more than 300 billion KRW since then. As KakaoBank's stock price continues to rise steadily, the price tag for Yes24 could increase further.

If the acquisition of Yes24 is completed, it is expected to create synergy effects by combining Naver's logistics capabilities. Additionally, Yes24's massive traffic, with a cumulative membership exceeding 18 million, will be secured and can be utilized for big data and other purposes. It is also anticipated to have a restraining effect on Coupang, which has entered the book market by expanding direct book purchases. An IB industry official said, "By acquiring Yes24, Naver can expand its platform into the online book and performance markets," adding, "Especially as the largest internet platform in Korea, it needs to continuously increase user traffic, and acquiring Yes24 will be positive in this regard."