Canada-based global multi-platform entertainment company Wattpad has agreed to be acquired by South Korean internet company Naver Corp in a $600 million cash-and-stock deal, it announced on Wednesday.
With the acquisition, Wattpad and its global community of over 90 million users will align with Naver’s Webtoon, a leading digital comics publisher with an average of over 72 million monthly active users.
The acquisition will allow Wattpad to continue to accelerate its international growth and success. The company will remain headquartered in Canada under the continued leadership of founders Allen Lau and Ivan Yuen.
The acquisition is expected to close in Q2 2021, subject to regulatory approvals and other customary closing conditions.
“Wattpad joining Webtoon under the Naver umbrella is a big step towards us becoming a leading global multimedia entertainment company,” said Webtoon’s founder and CEO, Jun Koo Kim.
In 2018, Wattpad had raised $51 million from Tencent Holdings, BDC, Globe Telecom’s Kickstart Ventures, Peterson Group, Canso, and Raine Ventures.
The company had earlier raised $117.8 million from international investors in Asia, the US, and Canada.
Naver Corp. is a global tech company, with properties including South Korea’s largest search portal Naver, messenger app Line, global digital comics platform Naver Webtoon and social media platform Naver Band.