As discussions on the merger between domestic OTT (Online Video Service) platforms Tving and Wave reach their final stages, KT, the second largest shareholder of Tving, has officially expressed discomfort regarding the merger process.
On the 16th, at the 'KT Group Media Talk' press conference held at the Andaz Seoul Gangnam Hotel in Gangnam, Seoul, Executive Director Kim Chae-hee of KT's media division spoke about the merger of Tving and Wave.
Executive Director Kim stated, "The two companies are proceeding on a path based on the premise of a merger, regardless of KT's intentions," and pointed out that "in certain aspects, they are engaging in activities that are equivalent to the effects of a merger."
Currently, the domestic OTT platforms Tving and Wave are pushing for a merger. Tving's largest shareholder is CJ ENM (48.9%), while Wave's largest shareholder is SK Square (36.7%). Both sides have made a joint investment of 250 billion won in Wave and have applied to the Fair Trade Commission (FTC) for a review of the merger involving concurrent executives, awaiting the results.
If the FTC approves this, they can send executives to each other and begin substantial integration work. If the merger between Tving and Wave is successful, the market share in the domestic OTT market is expected to reach up to 35%. This implies that a competitive landscape comparable to Netflix (with a market share of 38-40%) could be formed.
However, KT, which holds about 13% of Tving's shares and is the second largest shareholder, is skeptical. Executive Director Kim remarked, "From KT's perspective, the investment in Tving is not merely a financial investment, but a strategic partnership considering strong business synergies across the entire media business," adding, "I feel that the willingness and value for business collaboration at that time have been significantly undermined now."
He also added, "Wave's monopoly over terrestrial content is diminishing, and in this situation, I question whether the growth direction pursued through the merger aligns with Tving's shareholder value."
Separately, KT has announced its intention to focus on AI-based platform innovation, content production efficiency, and the introduction of new business models through its own media strategy, 'KT Media New Way.' Executive Director Kim emphasized, "While the Tving-Wave merger is a major issue in the industry, we are deeply contemplating the path we need to take independently of this and are focusing more on it."
[Kim So-yeon, Star Today Reporter]
