Korea’s OTT brands Tving, Wavve signs MoU for merger

[Courtesy of Tving, Wavve]

South Korea’s two major over-the-top (OTT) streaming services, Tving and Wavve, signed a memorandum of understanding (MoU) for a merger, the operators said.

Once the merger is completed, the two platforms will become the country’s top OTT service provider with up to 9.3 million monthly active users.

CJ ENM Corp., a media and entertainment giant under CJ Group, holds a stake of 48.85 percent in Tving, while SK square Co., an investment company under SK Group, holds a 40.5 percent stake in Wavve.

The exact merger ratio is yet to be confirmed but it is reported that CJ ENM will become the largest shareholder of the merged entity and SK square the second-largest shareholder.

Tving incurred an operating loss of 119.2 billion won ($90.7 million) in 2022, while Wavve’s losses for the period totaled 121.6 billion won.