[Alpha Biz= Kim Jisun] CJ ENM has withdrawn from the acquisition of Korean streaming platform Watcha, while another preliminary bidder, Kinolights, also declined to submit a final bid.
According to investment banking sources on April 23, CJ ENM did not participate in the final round of the competitive bidding process that closed on April 22, despite having submitted a letter of intent (LOI) in the preliminary stage. The company cited financial and business considerations behind its decision.
Kinolights, a content recommendation platform expanding into film IP distribution, also withdrew from the final bid, reportedly due to similar concerns over market conditions and financial risks.
Founded in 2011, Watcha was an early pioneer in Korea’s streaming market before the entry of global players such as Netflix. However, prolonged competition has significantly eroded its valuation from over KRW 300 billion to around KRW 10 billion.
Watcha entered court-led rehabilitation proceedings in July last year following a request from bondholders and has since been pursuing a sale through a public bidding process.
With major bidders stepping back, uncertainty is growing over the outcome of the sale, as the court had initially planned to select a preferred bidder within April.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
