Naver to acquire Wattpad for $600mn

Wattpad Studios, the companys TV, film, and publishing division, has established entertainment partnerships with TV and film studios globally.In 2019, Wattpad launched Wattpad Books, bringing diverse new voices to bookshelves everywhere.

New Delhi, Jan 20 (PTI) South Korea's Naver will buy Toronto-based storytelling platform Wattpad for about USD 600 million (around Rs 4,377 crore).

The Board of Directors of Wattpad - which has 90 million users globally including in India - on Wednesday announced its unanimous approval of a definitive agreement to be acquired by Naver.

''Naver is expected to acquire Wattpad in a cash and stock transaction valued at more than an estimated USD 600 million, subject to customary adjustments and other terms,'' a statement said.

The acquisition will allow Wattpad to continue to accelerate its international growth, it added.

Wattpad will remain headquartered in Canada under the continued leadership of founders Allen Lau and Ivan Yuen.

Wattpad has been available in India for years, but early in 2019, the company announced a new partnership and strategic investment from Times Bridge to grow its presence in India.

Wattpad has nearly three million users in India, with users spending an average of 37 minutes a day reading and engaging with stories.

These stories have been uploaded in more than 10 languages, including English and Hindi.

One of Korea's largest publicly listed companies, Naver has a portfolio of search, e-commerce, fintech, communications/social networking, cloud service, content, and entertainment services and brands including Smart Stores, N Pay, WEBTOON, LINE, BAND, V Live, Snow and others.

The move will align Wattpad, and its global community of more than 90 million people, with Naver's WEBTOON, a digital comics publisher with over 72 million monthly active users.

''Co-founders Allen Lau and Ivan Yuen, and the entire team at Wattpad, have created something special, and we are grateful to have Allen and Ivan continue to lead this fantastic company for us post-acquisition,'' Never CEO Seong-Sook Han said.

Wattpad's vision to entertain and connect the world through stories fits perfectly with Naver's vision for WEBTOON and its content brand, she added.

The acquisition is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions, the statement said.

''When we started Wattpad in 2006, we understood that technology would democratise storytelling and that stories are the atomic unit of every type of entertainment,'' said Allen Lau, Chief Executive Officer and co-founder, Wattpad.

In 2021, when every form of entertainment is being transformed, Wattpad has built a platform that can fuel hits on-screen and bookshelves, empowering and rewarding a new generation of diverse creators all over the world, Lau said.

''Today's news is about continuing Wattpad's journey and taking our business to the next level. We're thrilled about the prospect of joining the amazing teams at Naver and WEBTOON to continue our growth, help more writers make money, and bring new voices to screens and bookstores everywhere,'' Lau said.

Wattpad's global community reached 90 million people in 2020 — including more than five million writers — who spend over 23 billion minutes a month engaged in original stories ranging from science fiction to romance, fantasy and horror.

Around 1,500 Wattpad stories have been published as books or adapted for TV and film. Wattpad Studios, the company's TV, film, and publishing division, has established entertainment partnerships with TV and film studios globally.

In 2019, Wattpad launched Wattpad Books, bringing diverse new voices to bookshelves everywhere. Wattpad Books has published 21 books to date.

Wattpad has previously raised USD 117.8 million from international investors in Asia, the United States, and Canada.

The company's latest round was USD 51 million in 2018 from Tencent Holdings Limited, BDC, Globe Telecom's Kickstart Ventures, Peterson Group, Canso, and Raine Ventures.

Its previous investors include OMERS Ventures, August Capital, Union Square Ventures, Golden Venture Partners, Khosla Ventures, AME Cloud Ventures, Northleaf Venture Catalyst Fund and Version One Ventures.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)