South Korea’s pay TV market is in for one more large wave of consolidation because the M&A pipeline is swelling with not solely cable TV operators and in addition their program suppliers.
Taekwang Group is looking for to promote its cable channel supplier T-cast, in line with a number of trade sources on Monday. The transfer comes contemporary on the heels of the group’s sale of T-broad, Korea’s No. 2 cable TV operator, to SK Telecom in February.
T-cast runs a number of cable channels, together with E Channel, Display, Dramacube and the U.S. Fox community. Efforts to promote T-cast and T-broad in a package deal deal fell by means of final yr, with SK Telecom agreeing to purchase solely T-broad. The estimated worth for T-cast is alleged to be round 200 billion received to 300 billion received ($167 million-$250 million).
T-cast’s gross sales prospects have lately turned grim with the upcoming launch of Disney’s new streaming service, Disney Plus, in Korea. Disney, which acquired 21st Century Fox final yr, is reportedly contemplating ending Fox’s contract with the Korean cable channel supplier to bolster its personal choices on Disney Plus.
D’Stay, Korea’s third-largest cable operator that can also be on the gross sales block, is individually looking for to divest its program supplier IHQ. In February, it offloaded its 30 p.c stake in Dice Leisure to make itself extra engaging to potential consumers. The stake sale introduced D’Stay’s price ticket all the way down to 900 billion received, with IHQ’s worth set at about 400 billion received.
China’s Tencent and Korean leisure agency Huayi Brothers have reportedly proven curiosity in IHQ. However whereas IHQ’s leisure enterprise is a significant pull, its cable TV operations are a turn-off as a result of nature of the closely regulated trade, in line with sources.
Hyundai Division Retailer is seeking to promote Hyundai HCN, Korea’s No. 5 cable TV operator. Additionally it is mentioned to be contemplating sweetening the deal by pursuing a separate sale for Hyundai Media, a Hyundai HCN unit, to decrease HCN’s promoting worth of 600 billion received. However trade observers say Hyundai Media is much less engaging because it lacks media contents in comparison with its rivals.
Korea’s pay TV market has been seeing huge consolidation led by the nation’s three wi-fi carriers.
As of late 2019, KT and its satellite tv for pc TV operator KT Skylife led Korea’s pay TV market with a 31.52 p.c share. LG Uplus got here second with a 24.91 p.c share after buying Korea’s greatest cable TV operator CJ Howdy final yr. SK Telecom trailed shut behind with 24.17 p.c after merging its web service unit SK Broadband with the No. 2 cable participant T-broad.
The market is poised for one more large shake-up because the remaining prime 5 cable TV operators – D’Stay, Central Multi Broadcasting (CMB) and Hyundai HCN – are additionally up on the market.
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]