이 기사는 2021년 06월 04일 07:58 thebell 에 표출된 기사입니다.

South Korea’s content production firm JTBC Studios has acquired U.S. independent television studio Wiip for 133.8 billion won ($120 million) to make a foray into the U.S. market.

JTBC Studios said in a regulatory filing on Wednesday that it acquired an 80.01% stake in Tornado Enterprises, the parent company of Wiip, on May 31.

Tornado Enterprises recorded revenue of 31.6 billion won and 41.6 billion won in 2019 and 2020, respectively. It posted a net loss of 31.6 billion won and 16.9 billion won during the same period.

JTBC Studios has thought it could bear the burden of the U.S. company’s weak financial performance in the short-term. The Korean production firm recorded an operating income of 13.7 billion won in the first quarter, which is equivalent to its operating income of 2020. Its operating margin was 16.2% in the first quarter, up from around 7% in 2019 and 2020.

JTBC Studios’ better financial performance is attributable to the improvement in its business structure. The Korean content distributor aired three TV drama series in a week in the first quarter whereas it aired two drama series weekly in the first quarter last year. It has also secured increased source of revenue as it supplies more dramas to global over-the-top (OTT) providers like Netflix. JTBC Studios has ample cash after raising 400 billion won from investors in April.

The latest acquisition will help the Korean firm to strengthen its tie-up with global OTT providers without burning more cash. Founded in 2018, Wiip has produced many popular TV series including “Dickinson” season 1 and 2 for Apple TV+ and “Dummy” season 1 for ROKU. Wiip will produce the third season of “Dickinson” for Apple TV+ and “Mare of Easttown” for HBO Max.

JTBC and Wiip will expand their partnership through the deal to various areas like co-production, distribution and remaking of intellectual properties. (Reporting by Pil-woo Choi)