Naver Acquires Wattpad

South Korean internet giant Naver, which owns the global digital comics platform WEBTOON, is acquiring Wattpad in a cash and stock deal valued at more than $600 million.

The acquisition is intended to help Wattpad boost its international growth. It will remain based in Canada and led by Allen Lau and Ivan Yuen. Wattpad serves a community of more than 90 million people, while WEBTOON has an average of more than 72 million monthly active users. The deal is expected to close in the second quarter.

“Co-founders Allen Lau and Ivan Yuen, and the entire team at Wattpad, have created something special, and we are grateful to have Allen and Ivan continue to lead this fantastic company for us post-acquisition,” said Seong-Sook Han, CEO of Naver. “Wattpad’s vision to entertain and connect the world through stories fits perfectly with our vision for WEBTOON and Naver’s content brand. We’re thrilled to have them join the Naver family.”

“Wattpad joining WEBTOON under the Naver umbrella is a big step towards us becoming a leading global multimedia entertainment company,” said WEBTOON founder and CEO, Jun Koo Kim. “Both Wattpad and WEBTOON care most about helping creators tell their story their way, and both represent world-leading collections of inspired, imaginative storytelling IP.”

Allen Lau, CEO of co-founder of Wattpad, added, “When we started Wattpad in 2006, we understood that technology would democratize storytelling and that stories are the atomic unit of every type of entertainment. In 2021, when every form of entertainment is being transformed, we’ve built a platform that can fuel hits on-screen and bookshelves, empowering and rewarding a new generation of diverse creators all over the world. Today’s news is about continuing Wattpad’s journey and taking our business to the next level. We’re thrilled about the prospect of joining the amazing teams at Naver and WEBTOON to continue our growth, help more writers make money, and bring new voices to screens and bookstores everywhere.”