The global craze for Netflix’s original Korean drama series, “Squid Game,” is adding momentum to the fast-growing South Korean media and entertainment market.
Tving, the country’s leading streaming service provider run by entertainment and media firm CJ ENM, recently set out to lure investments from private equity funds at home and abroad, in partnership with Nomura Securities, according to industry sources Thursday.
Tving plans to sell its new shares worth 300 billion won ($255.4 million). The envisioned investments would drive up its corporate value to a maximum of 2 trillion won, which was calculated based on the price-to-sales ratio that values a business by comparing the market price of its stock to its net sales.
Assuming that the platform’s nearly 1.5 million subscribers pay at least 7,000 won per month, its annual sales would exceed 126 billion won.
Given that the corporate valuation of domestic and foreign streaming companies is generally seven to 10 times higher than its sales, Tving could be valued at an estimated 1.5 trillion won.
Originally launched by CJ ENM as its online video-on-demand service in 2010, Tving was separated from the mother company last year and partnered with production company JTBC Studios.
It earlier announced to invest more than 400 billion won over the next three years and expand its market share with over 5 million paid subscribers by 2023.
[By Gaurav, K-pop Updates]