*This article was first published on Signal, the capital markets section of the Seoul Economic Daily, at 15:38 on March 29, 2026.*
CJ ENM, a major South Korean entertainment conglomerate, has entered the acquisition race for Watcha, a first-generation domestic content streaming service. Although Watcha has struggled to compete against large over-the-top (OTT) platforms such as Netflix, its ability to curate content tailored to user preferences is still highly regarded. Strategic investors (SIs) looking to expand their content businesses have shown interest in acquiring the platform, which has accumulated long-term data and brand recognition.
According to investment banking (IB) industry sources on March 29, CJ ENM submitted a letter of intent (LOI) to Samjong KPMG, which is managing the sale of Watcha. Multiple companies besides CJ ENM are also known to have submitted LOIs before the March 25 deadline. An LOI is a document in which a prospective buyer formally declares its acquisition interest in a mergers and acquisitions (M&A) transaction, containing key details such as the proposed purchase price, deal structure, and major conditions. Watcha's creditor group is understood to have begun meeting with some prospective buyers after receiving the LOIs, moving the sale process into full swing.
Watcha's enterprise value is estimated at around 10 billion won ($7 million). Prolonged losses from fierce competition with large domestic and international OTT platforms have eroded its valuation, which once exceeded 300 billion won. In July last year, Watcha entered court-led restructuring proceedings after some convertible bond (CB) investors filed a petition. The company initially considered a "stalking horse" approach — designating a preferred buyer before soliciting competitive bids — but switched to an open bidding process after multiple prospective buyers emerged.
Founded in 2011, Watcha pioneered Korea's content streaming market before Netflix entered the country. CJ ENM and other strategic investors are drawn to Watcha's curation expertise, accumulated data, and brand awareness. If the sale is completed through the restructuring process, the company's debt can be resolved to improve its financial structure, allowing acquisition at a relatively low price — a factor that has also attracted investor attention.
