[Click eStock] "CJ ENM, Tving and Season Merge... The Emergence of an Absolute Content Powerhouse"

[Asia Economy Reporter Hwang Yoon-joo] On the 14th, Daishin Securities evaluated the recent merger announcement between CJ ENM's TVING and Seezn as a rare and good merger with immediate synergy potential. Accordingly, they maintained a 'Buy' investment rating and a target price of 160,000 KRW.

Researcher Kim Hoe-jae of Daishin Securities stated, "With this merger, TVING's corporate value has been established at around 2.3 trillion KRW."

Researcher Kim analyzed, "The subscriber base is estimated to be around 3.3 million," adding, "Based on KoreanClick's mobile app net installs (Android), it ranks second (approximately 4.06 million) after Netflix (6.5 million)." After the merger, KT Studio Genie is estimated to be the third-largest shareholder, holding about 13% of TVING's shares.

Researcher Kim emphasized, "As of 2021, CJ ENM's revenue share was 50% and profit share was 56% from broadcasting," adding, "While broadcasting is rapidly shifting from TV-centered to digital-centered, CJ ENM's growth engine is TVING."

He projected, "With this merger, TVING's subscribers will increase from the existing 2.3 million to about 3.3 million, and from 2023, TVING's business is expected to surpass the break-even point (BEP)."

KT has already launched a 5G specialized plan that includes TVING as an additional service, and it is judged that future collaboration where TVING is provided as a default on KT smartphones is possible. This means the merger is advantageous for both CJ ENM and KT.

Researcher Kim evaluated, "KT's content, proven through planning, investment, and production capabilities with 'Extraordinary Attorney Woo,' is stably provided to TVING, and the synergy effect is also expected as CJ ENM/Studio Dragon, the number one domestic content providers, stably supply content to KT's 13 million paid broadcasting subscribers."