WEBTOON Entertainment to go public

LA’s WEBTOON Entertainment has initiated the process to become a publicly traded company, filing an IPO last week (May 31) with the US Securities and Exchange Commission. 

The number of shares that will be issued—and their pricing—have yet to be determined. But parentco Naver, a South Korean internet conglom, plans to continue controlling the company after the IPO.

WEBTOON owns and operates a same-name web comic platform whose users share free and paid content, as well as self-publishing story app Wattpad, which it acquired in 2021. As of March 2024, both platforms combined were home to around 24 million creators and 170 million monthly active users worldwide—with Gen Z (under age 24) making up 75% of the North American user base.

The company’s three main revenue streams are paid content, advertising and IP adaptations. WEBTOON generated US$1.2 billion in revenue last year, up from US$1 billion in 2022. But its net losses also widened in the same period, from US$132.5 million to US$144.8 million, and this trend is anticipated to continue as it absorbs costs associated with business growth, combatting higher levels of competition and the public offering itself. The company summed up these economic dynamics in the following statement: “If our user growth does not increase to offset these anticipated increases in our operating expenses, our business, financial condition or results of operations could be adversely affected, and we may not be able to achieve or maintain profitability.”

WEBTOON’s content spans multiple genres (everything from slice of life and comedy, to fantasy and sci-fi) and has generated strong numbers on the platform—plus many of its popular titles have crossed over into print publishing, consumer products and bigger-screen projects. 

Most recently, WEBTOON author Rachel Smythe’s popular YA web comic Lore Olympus (pictured) wrapped up this month, with more than 1.7 billion page views generated since 2018. Wattpad WEBTOON Studio is currently working with The Jim Henson Company on an animated series adaptation of the IP.