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These aren't the comics you saw as a kid. Comics are big business in Asia, especially when published online. The largest private equity deal in Japan this year was for a digital comic distribution company.
Blackstone said Tuesday it was launching a tender offer for online comic book company Infocom, reportedly valuing the company at about $1.8 billion. Other comic book fans are watching closely because the deal could set the tone for rival companies looking to go public.
Infocom operates Mecha Comic, Japan's largest digital manga distribution platform. Digital manga accounts for nearly three-quarters of the company's sales, and the company expects its net profit to nearly double in fiscal 2023.
Traditionally popular in Asia, digital comics have recently gained popularity in other markets, such as the U.S. In particular, webtoons, a type of digital comic that originated in Korea, have gained a global audience. Webtoons are short comics that are read in a vertically scrolling format on smartphones.
Webtoons are a particularly lucrative business because they have a diverse business model: Users pay for each episode they read using micropayments, and advertising drives revenue. Then, print sales of webtoons, merchandising, and film licensing rights continue to bring in revenue even years after the webtoon was uploaded.
Webtoon Solo Level Up For example, 2018's global hit Your Name brought in an estimated $20 million in monthly sales for the manga thanks to readers in Germany and Brazil. Love Alarm, Itaewon Class and We are all dead It became a Netflix original series.
California-based Webtoon Entertainment, which oversees South Korean internet group Naver’s webtoon business, filed this week for an initial public offering of 15 million shares, aiming for a valuation of $2.7 billion when it lists in New York, underscoring growing interest in the sector.Accounts managed by BlackRock could hold up to $50 million in shares as Cornerstone investors.
The trend is evident in China, where shares of China Literature Group, a subsidiary of social media giant Tencent and a Chinese rival, have risen 27% from a February low.Growing user numbers and rising operating profits should help those margins reach a record high of about 15%, according to S&P Capital IQ.
There's also the AI angle. Artificial intelligence means rapid growth in newly created content on these platforms, which translates into increased revenue. AI tools could speed up the process of sketching and illustrating webtoons, which is currently done by hand, giving creators more time to focus on storytelling and planning. Digital comics are serious business.
june.yoon@ft.com
