JTBC, the South Korean general programming broadcaster undergoing court-led rehabilitation, has selected EY Hanyoung as the lead manager for its sale and will begin the formal divestment process. The broadcaster aims to issue a sale notice this month and complete a merger and acquisition deal before its rehabilitation plan wins court approval.
"EY Hanyoung has already reviewed JTBC's current status and core businesses as the court-appointed examiner, so we expect the M&A to move quickly," JTBC said on the 14th.
The process will start with this month's public notice, followed by the receipt of letters of intent, due diligence and bidding. A preferred bidder will then be named, and the deal will go through court procedures for a definitive agreement so that the M&A can be completed before the rehabilitation plan is approved.
EY Hanyoung pointed to JTBC's content production capabilities, intellectual property and the competitiveness of its news division as the main strengths of the asset. "JTBC is a large asset with high brand value, including its ability to produce drama and entertainment content, its IP holdings and the top news ratings among general programming channels," the firm said. "Several potential buyers had expressed interest even before the sale process began, and we expect market interest to grow further once the formal process starts."
JTBC defaulted in June this year after failing to repay 20.6 billion won in securitized borrowings. Losses widened as the financial burden from Olympic and World Cup broadcasting rights coincided with a contraction in the television advertising market. Liquidity problems across the broader Joongang Group added to the deterioration in its finances.
On a consolidated basis, first-half revenue rose 4.3% to 190.1 billion won from 182.2 billion won a year earlier, but the operating loss widened to 26.6 billion won from 11.3 billion won over the same period. Annual operating losses had been shrinking, from 70.7 billion won in 2023 to 38.6 billion won in 2024 and 28.7 billion won last year, before the deficit expanded again this year. The debt-to-equity ratio stood at 2,600% at the end of the first half.