Naver buying 15.4 percent of Tving for 40 billion won

Logo of over-the-top (OTT) platform Tving [TVING]

Naver is buying 15.4 percent of Tving for 40 billion won ($35 million) to become the second-largest shareholder in the media company.

Tving, which is 83.3 percent owned by Kosdaq-listed CJ ENM, will sell 261,817 new shares at 152,778 won to Naver by July 7, the parent said in a statement.

According to CJ ENM, the capital increase will be used to financial original content for Tving, which hopes to create 100 programs and gain 8 million paid subscribers by 2023.

The two companies plan to cooperate in helping Tving tap into overseas markets.

Last October, Naver acquired 5 percent of CJ ENM and CJ ENM acquired 0.32 percent of Naver, and Naver Plus users gained access to Tving as a result of the deal.

“We plan to enhance Tving’s influence through close cooperation with Naver, creating well-made original content that will appeal not only in local markets but also in overseas countries,” said Tving CEO Yang Ji-eul.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]