Naver Corporation Acquires Dunamu in a Groundbreaking $10.3 Billion Deal
South Korean internet titan, Naver Corporation, has recently made headlines with its monumental $10.3 billion all-stock acquisition of Dunamu. Dunamu is the operator of the country’s leading cryptocurrency exchange, Upbit. This strategic move is set to establish one of Asia’s most influential fintech conglomerates.
The agreement, which received the green light from both companies’ boards on Wednesday, entails that Naver’s fintech subsidiary, Naver Financial, will issue 2.54 new shares for every Dunamu share. This arrangement will make Dunamu a wholly-owned subsidiary. The merger brings together Naver’s commanding presence in South Korean digital services and Upbit’s recognition as the world’s fourth-largest crypto exchange by trading volume.
This deal strategically positions the merged entity to initiate a Korean won-backed stablecoin project and broaden its reach into comprehensive digital financial services. With Naver Financial processing annual payment volumes worth a staggering $58 billion and Upbit managing over $2 billion in daily trading volume, the merger births a formidable player in the rapidly evolving digital finance sector.
Upon receiving shareholder approvals, the unified company has ambitious plans for aggressive global expansion. This includes potential plans for a Nasdaq IPO, aimed at providing international investors with access to South Korea’s vibrant crypto market. This acquisition is reflective of a wider trend of traditional tech giants integrating cryptocurrency and blockchain capabilities into their core business models.
Source: Bloomberg