(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
HONG KONG (Reuters Breakingviews) – Concise insights on global finance.
SERIAL ACQUIRERS. Two South Korean web giants are embarking on their next overseas chapters. Kakao Entertainment said on Tuesday it is buying bite-sized fiction apps Tapas Media and Radish Media, for a combined $950 million. Rival Naver also just completed its acquisition of Toronto-based storytelling platform Wattpad for more than $600 million here.
The North American acquisition spree makes sense strategically. The webtoon, or digital comic, producers, are both eyeing potential U.S. initial public offerings. Kakao Entertainment’s boss reckons his business could be worth more than $18 billion in a listing. Demand for niche genres and new formats is on the rise. Sony is forking out $1.2 billion for AT&T’s anime streaming service Crunchyroll, although that deal may be facing regulatory concerns. At $440 million, Kakao is paying an eye-watering 22 times trailing sales for Radish. Some of these new content deals will end up shelved in the financial fantasy section. (By Sharon Lam)
On Twitter twitter.com/breakingviews
Earlier in Capital Calls:
Wynn bets too much on SPAC
Sabers down for Project JEDI
Italy dynasty coughs up for road buyout
French music IPO hits a minor key
Fintech will have to do trustbusters’ job on banks
Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.