JTBC, undergoing corporate rehabilitation, has officially begun seeking a new owner. This rare large-scale sale in the domestic broadcasting and content market has captured the media industry’s attention.
On October 14th, the Seoul Bankruptcy Court approved the selection of accounting firm EY Han Young as the lead manager for JTBC’s sale, about three weeks after the application was submitted on the 23rd of last month. EY Han Young has been serving as the court-appointed investigator since JTBC’s rehabilitation process began at the end of August.
JTBC has signaled a speedy process. A spokesperson stated, “Since EY Han Young, as the court investigator, is already familiar with JTBC’s current status and key businesses, we expect a prompt M&A process.”
They added, “We aim to complete the sale before the rehabilitation plan’s approval, and will quickly proceed with posting the sale notice and related procedures in October.”
Once the sale notice is issued this month, letters of intent, due diligence, and bidding will follow in sequence. Then, the preferred bidder will be selected, followed by a final contract and court procedures.
The target timeline is before the rehabilitation plan approval scheduled for January next year. The likely transaction method involves reducing existing shares, with the acquirer subscribing to new shares through a third-party allotment. Currently, JoongAng Holdings holds the largest stake in JTBC at 25.01%.
The lead manager has highly evaluated JTBC’s value. EY Han Young said, “JTBC holds high brand value with strong drama and entertainment content production capabilities, IP assets, and the highest news ratings among comprehensive programming channels, representing a rare large-scale sale in the domestic broadcasting and content market.”
They added, “Several potential buyers have already shown interest prior to the sale process, and we expect market interest to increase as the procedure officially begins.” Industry insiders suggest 5 to 6 companies, including media-related firms, as potential buyers.
However, significant hurdles remain. Ownership of comprehensive programming channel shares is subject to regulations under the Broadcasting Act. Large conglomerates with total assets exceeding ₩10 trillion KRW face restrictions on ownership, which could narrow the pool of bidders. Approval of the largest shareholder change by the Broadcasting and Communications Commission is also required. Additionally, the Financial Supervisory Service is investigating whether JTBC’s corporate bonds and commercial paper were sold improperly.
In June, JTBC defaulted on about ₩20.6 billion KRW (about $15.4 million USD) in securitized loans and since has entered court-led corporate rehabilitation.