Topcomedia, a webtoon content company, announced on April 25 that new shares have been listed as a result of its merger with Toptoon. The merger was conducted through an absorption merger in which Topcomedia, a listed company, absorbed Toptoon, an unlisted company. The merger process was completed on April 1.
Topcomedia and Toptoon have each developed their webtoon businesses, focusing on the Japanese and both domestic and international markets, respectively. Through the merger, Topcomedia will integrate the webtoon businesses of both companies, and Toptoon will cease to exist. Topcomedia is expected to emerge as an integrated platform company encompassing both domestic and global webtoon markets.
There had been issues with internal transaction procedures and duplicate management costs in the process of content production and distribution. However, with the merger, all processes have been unified into a single system. The company expects this to improve operational efficiency and reduce costs.
Toptoon, which has recorded stable operating profits, is expected to contribute to strengthening Topcomedia's financial soundness. The company also anticipates accelerating investment expansion and global market growth in the future.
Topcomedia plans to use the merger as an opportunity to focus on strengthening its competitiveness in the Japanese market. Japan is the world's largest comic book market, and as of 2023, digital comics account for 70% of the entire comic book market in Japan, demonstrating rapid growth. The strategy is to use Toptoon's profits as marketing resources to expand its readership in Japan and increase its platform market share.
A Topcomedia representative stated, "This merger will serve as an opportunity not only for simple business integration but also to further enhance the competitiveness of our webtoon business," adding, "We will continue to expand our influence in both domestic and global webtoon markets."
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