BlackRock backs IPO from online comics company Webtoon Entertainment
By Steve Gelsi
BlackRock agrees to buy $ 50 million in stock in IPO of comics content unit of South Korea's Naver Corp
Webtoon Entertainment Inc. is seeking a market valuation of about $2.5 billion as the online comics unit of South Korea's internet and search company Naver Corp. prepares its initial public offering.
Webtoon plans to offer 15 million shares at an estimated price range of $18 to $21 a share in its upcoming IPO on the Nasdaq under the symbol WBTN.
At the midpoint of the range, the IPO will raise about $292.5 million with underwriters Goldman Sachs, Morgan Stanley, JPMorgan and Evercore ISI.
With 129.32 million shares outstanding, including underwriter shares, Webtoon's market capitalization will be about $2.5 billion at an IPO price of $19.50 a share.
BlackRock Inc. (BLK) has agreed to buy up to $50 million of stock in the IPO, Webtoon said in a Monday filing.
South Korea's Naver Corp. (KR:035420) will retain about 62% of Webtoon's stock after it goes public.
Junkoo Kim, founder and chief executive of Webtoon, said he launched the company as a side project while working for Naver as way to provide a place for content creators to share their stories and characters.
The company became an independent unit of Naver in 2017.
In 2023, the average professional creator on Webtoon earned $48,000 a year. The top 100 creators made more than $1 million a year, the company said.
Webtoon reported net income of $6.2 million on revenue of $326.7 million in the three months ended March 31. In the year-ago period, Webtoon reported a net loss of $18.29 million on revenue of $310.3 million.
For full-year 2023, Webtoon lost $144.8 million on revenue of $1.28 billion, compared to a loss of $132.5 million on revenue of $1.08 billion in 2022.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-18-24 0821ET
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