The Fair Trade Commission has conditionally approved the merger of Tving, a domestic online video service (OTT), and Wave. The merger-related procedures are still pending.
On the 10th, Wave stated to Maeil Business Star Today, "The merger with Tving still requires shareholder approval and other procedures," and added, "We will closely consult among shareholders."
Regarding changes in management, they stated, "Employees from both companies can be mutually appointed as directors," and "We can actively promote substantial business cooperation, such as dispatching executives. Currently, no decisions have been made regarding management changes, but we will continue discussions to operate both platforms efficiently."
On the effects of the merger between Tving and Wave, they explained, "It will create various synergies such as expanding content investment, streamlining platform operations, innovating services, enhancing user benefits and maximizing satisfaction, and strengthening global competitiveness," adding, "We will disclose specific business cooperation plans as soon as they are finalized."
They emphasized, "Wave and Tving will combine each company's management know-how and platform capabilities," stating, "We will provide users with more diverse content and an enhanced viewing experience, focusing on strengthening K OTT competitiveness and leading the creation of a sustainable K content ecosystem."
On the same day, the Fair Trade Commission conditionally approved the merger of Tving and Wave, stating that they must maintain the current pricing plans until the end of next year.
Tving and Wave must maintain their current pricing plans until December 31, 2026. If the two services merge, they must launch a new pricing plan that is similar in price and service to the existing plans and operate it until December 31, 2026. Additionally, consumers who are subscribed to the current pricing plans must be able to continue using the service, and even if they cancel their plans after the launch of the integrated service, they must be allowed to re-subscribe to the same plan within one month of their cancellation.
The reason the Fair Trade Commission attached these conditions is due to concerns that the merger of Tving and Wave could increase their pricing power.
In November last year, CJ ENM and Tving signed an agreement with Wave to appoint 5 out of 8 directors, including the CEO, and 1 auditor from their employees. A month after signing the agreement, they reported the merger to the Fair Trade Commission.
