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LOS ANGELES - The Alliance for Creativity and Entertainment (ACE), a major coalition committed to combating digital piracy, has announced the inclusion of NAVER WEBTOON as its newest member. NAVER WEBTOON, a subsidiary of WEBTOON Entertainment Inc. (WBTN), marks the first webcomic and webnovel company, as well as the first Korean-founded company, to join the coalition. According to InvestingPro data, WEBTOON Entertainment has built a substantial business generating annual revenue of $1.35 billion.
ACE, which is backed by more than 50 media and entertainment firms, including major studios and sports associations, has been effective in orchestrating global enforcement actions against illegal streaming services and content sources. The addition of NAVER WEBTOON to its ranks reflects ACE’s continued efforts to protect intellectual property across various forms of media and its recent expansion in the Asia Pacific region.
WEBTOON Entertainment Inc., the parent company of NAVER WEBTOON, is based in Los Angeles and trades on the Nasdaq. With a market capitalization of $1.13 billion and a strong liquidity position evidenced by a current ratio of 2.67, the company has been instrumental in the rise of webcomics, resulting in a new wave of comic creator superstars and a valuable source of intellectual property for the global entertainment sector. Its studios, Wattpad WEBTOON Studios in the U.S. and Studio N in Korea, have produced popular content for streaming platforms like Netflix, Disney+, Prime Video, and Crunchyroll. For detailed financial analysis and additional insights, investors can access comprehensive research reports on InvestingPro.
Charles Rivkin, Chairman and CEO of the Motion Picture Association and Chairman of ACE, emphasized the importance of building relationships with local law enforcement and strengthening efforts to combat the piracy ecosystem that jeopardizes consumer safety and the creative economy.
Junkoo Kim, Founder & CEO of WEBTOON Entertainment, expressed pride in being the first webcomic company to join ACE and emphasized the company’s dedication to protecting creators and addressing the issue of illegal content distribution.
This development is part of ACE’s broader mission to safeguard the legal creative market and reduce digital piracy through criminal referrals, civil litigation, and cease-and-desist operations. The coalition’s governing board includes prominent companies such as Amazon, Apple TV+, Netflix, Paramount Global, Sony Pictures, Universal Studios, The Walt Disney Studios, and Warner Bros. Discovery. WEBTOON Entertainment’s stock has experienced significant pressure, trading near its 52-week low of $8.32, down 62% over the past year. InvestingPro analysis suggests the stock may be undervalued at current levels, with multiple factors supporting potential upside.
The information in this article is based on a press release statement.
In other recent news, Webtoon Entertainment Inc. reported its Q4 2024 earnings, revealing a revenue of $352.8 million, which marked a 10.4% increase on a constant currency basis. Despite this growth, the company experienced a net loss of $153 million for the full year, with earnings per share falling short of expectations at -$0.03. The company’s adjusted EBITDA saw a significant surge, increasing by 600% year-over-year to $67.9 million. Analysts at Evercore ISI and Goldman Sachs have revised their price targets for Webtoon, with Evercore reducing it to $23 from $27, while Goldman Sachs adjusted it to $15 from $25, both maintaining positive ratings on the stock. Webtoon continues to face challenges due to foreign exchange volatility and government-imposed bans on its Wattpad service in certain regions, which have impacted user numbers. The company is focusing on transitioning users to its app platform, which has shown an increase in webcomic app monthly active users by 6.7%. Webtoon is also investing in user engagement and content improvements, with a positive outlook on its long-term growth and margin potential.
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