Yahoo Finance Naver’s Webtoon Entertainment Files for US IPO Disclosing Losses
(Bloomberg) -- Webtoon Entertainment Inc. filed for a US initial public offering after backer Naver Corp. this year accelerated plans for the market debut of the online comics operator.
Most Read from Bloomberg
Key Engines of US Consumer Spending Are Losing Steam All at Once
Homebuyers Are Starting to Revolt Over Steep Prices Across US
Mnuchin Chases Wall Street Glory With His War Chest of Foreign Money
Saudi Arabia Puts Wall Street on Notice to Set Up Shop in Riyadh
Modi Set for Landslide Election Win in India, Exit Polls Show
Los Angeles-based Webtoon said in a filing Friday with the US Securities and Exchange Commission that South Korean internet company Naver will continue to control it after the IPO. Proposed terms for the offering will be disclosed in a later filing.
Webtoon could seek to raise as much as $500 million at a valuation of $3 billion to $4 billion, Bloomberg News reported in February.
Webtoon had a net loss of $145 million on revenue of $1.28 billion last year, both increasing from 2022 when the company lost $133 million on revenue of about $1 billion, according to the filing. The company said in the filing that, along with Naver, Tokyo-based Ly Corp. also owns 5% or more of its stock. The shares held by founder and Chief Executive Officer Junkoo Kim will be disclosed in a later filing.
The offering is being led by Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co. and Evercore Inc. The company plans for its shares to trade on the Nasdaq Global Select Market under the symbol WBTN.
Webtoon connects 24 million creators with about 170 million monthly active users in more than 150 countries, according to its filing.
Naver, providing online services from search and shopping to social media, had considered listing the Webtoon business since 2021, around the time the novel medium began to catch on in major markets such as the US. Today webtoons — short-episode digital comics designed for scrolling on mobile devices — are considered one of South Korea’s more successful cultural exports alongside K-pop and drama series, driving business for Naver and rival Kakao Corp.
Read More: Webtoons Are Latest South Korean Cultural Export to Find US Fans
Since emerging almost two decades ago, the webtoon medium has taken off with the proliferation of mobile devices. The platform made it easy for authors to release content that may not have appealed to traditional publishers, and helped them reach larger audiences. The medium has gained a reputation for producing content whose appeal stretches beyond the traditional comic book audience of young males.
--With assistance from Gillian Tan, Sohee Kim and Manuel Baigorri.
Most Read from Bloomberg Businessweek
Disney Is Banking On Sequels to Help Get Pixar Back on Track
Israel Seeks Underground Secrets by Tracking Cosmic Particles
How Rage, Boredom and WallStreetBets Created a New Generation of Young American Traders
US Malls Avoid Death Spiral With Help of Japanese Video Arcades
©2024 Bloomberg L.P.
