Naver Denies Decision on Baedal Minjok Acquisition Amid Uber Consortium Reports
Quick Look
Naver Corp. stated it has not yet decided on acquiring Baedal Minjok's operator, Woowa Brothers, despite media reports of a potential consortium with Uber to purchase the company for $5.37 billion from Delivery Hero.
AI-generated summary
Why It Matters
Naver Corp. is a South Korean technology company. Uber is a global ride-hailing and delivery company. Delivery Hero is a German online food-ordering and delivery platform. Woowa Brothers Corp. operates Baedal Minjok, South Korea's largest food delivery platform.
SEOUL, May 19 (Yonhap) -- Naver Corp. said Tuesday it has yet to reach a decision on the acquisition of the operator of leading food delivery app Baedal Minjok.
The announcement follows recent media reports that claimed the company is seeking to take control of the delivery app through a consortium with Uber.
"The company is exploring various options to strengthen business competitiveness, but no specific decisions have been made for the time being," Naver announced via a regulatory filing.
Naver said it plans to notify related details within one month should a decision be made, according to the filing.
The notice came after a local media outlet said Naver expressed intent to form a 20-80 consortium with the ride hailing app Uber to acquire Woowa Brothers Corp., the operator of South Korea's largest food delivery platform, Baedal Minjok, or Baemin.
The two companies reportedly proposed purchasing the entire stake in Woowa Brothers for 8 trillion won (US$5.37 billion) from Delivery Hero, a German online delivery platform.
The German company is reportedly seeking to sell Woowa Brothers and is said to have appointed JP Morgan Chase & Co. as the sales adviser.
Delivery Hero acquired an 87 percent stake in Woowa Brothers for about $4 billion in 2019 and is said to be seeking around 8 trillion won for the sale.
What to Watch
AI outlook — possibilities, not facts
Naver will provide an update on the acquisition decision within one month.
Very likely · Within months
Open Questions
- Will Naver proceed with the acquisition?
- What will be the final terms of the acquisition if it goes through?
- What is Delivery Hero's specific reason for selling Woowa Brothers?
- What is Uber's exact role and stake in the potential consortium?
