Wattpad Under Naver: Boosting User-Generated Content
Wattpad Acquired by Naver: A New Chapter for Social Storytelling
As of today, Toronto-based Wattpad has officially become a part of South Korean tech company Naver, following the completion of a $600 million acquisition involving both cash and stock. The agreement stipulates that Wattpad will maintain its headquarters and operations within Canada.
Leadership and Growth Plans
Allen Lau, co-founder of Wattpad, will continue to serve as CEO of the social storytelling platform, reporting directly to Jun Koo Kim, the CEO of Naver’s Webtoon. Lau shared insights regarding the changes and continuities expected following the integration with Naver and Webtoon.
Wattpad experienced substantial growth in both revenue and company size last year, and anticipates an even more accelerated pace in the coming year. The company intends to expand its Canadian workforce, with plans to hire over 100 new employees, primarily in Toronto and Halifax.
Synergies with Naver and Webtoon
The acquisition is driven by significant “synergies” between Wattpad and Webtoon, enabling both companies to better capitalize on their individual market opportunities. Naver is recognized as a global internet leader, but the core rationale for this merger lies in the strengths of Webtoon.
Webtoon currently boasts over 76 million monthly users, making it the world’s largest digital publisher. When combined with Wattpad’s 90 million monthly users, the total reach expands to an impressive 166 million. This positions the combined entity as the undisputed leader in the digital storytelling landscape, encompassing both comics and fiction.
Intellectual Property and Content Creation
Both companies possess complementary strengths in intellectual property (IP) development. Wattpad has a proven track record of transforming user-generated fiction into successful original series and films through its Books and Studios divisions.
Notable examples include Netflix’s “The Kissing Booth,” which originated from content created by authors on the Wattpad platform. Streaming services are actively seeking new properties to attract and retain younger audiences.
The Power of Data-Driven Insights
Wattpad functions as an “IP factory” for user-generated content, while Webtoon offers a wealth of proven IP with established audiences and comprehensive data analytics. The merger effectively doubles the combined library of blockbuster IP overnight.
Furthermore, Wattpad’s unique analytics platform provides invaluable insights into what resonates with fans, enabling collaborators in TV and film to make informed decisions during adaptation. This data-backed approach gives Wattpad a competitive advantage over established franchises.
Unprecedented Fan Engagement
Wattpad’s success stems not only from its user-generated content but also from its ability to leverage data to understand fan preferences. The company can provide specific guidance to screenwriters, such as prioritizing certain chapters or sections based on fan feedback and machine learning analysis.
This level of insight is unprecedented, allowing for adaptations that are finely tuned to resonate with the target audience. With Naver and Webtoon, Wattpad can now extend its data-driven IP generation across a wider range of media formats.
A Competitive Advantage in the Media Landscape
The combined capabilities of Wattpad, Naver, and Webtoon create a compelling value proposition for companies seeking to compete with industry giants like Disney. The ability to leverage cross-media engagement and data-driven insights positions the new entity for significant growth and innovation in the evolving entertainment landscape.
