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Merger of the Largest On-line Bookstores of `Yes 24` and `Wowbook`

Merger of the Largest On-line Bookstores of `Yes 24` and `Wowbook`

Posted May. 14, 2002 09:04,   


Domestic on-line bookstores Yes 24(www.yes24.com) and Wowbook (www.wowbook.com) will be merged.

Yes 24 announced that it signed the final contract for merger and would complete the practical process of merger by August.

These companies will be merged into the company of sales up to yearly 20 million won with 50 percent of market share. Yes 24 and Wowbook will exchange their shares at the rate of 1 to 5, and Lee Gang-In representative of Yes 24 will take over the post of representative of the united corporation.

Business circles take this merger for the signal of rearrangement of on-line bookstores. When large company sharing 50 percent of the market is created through the merger, the price off competition in spite of deficit will slow down.

Jung Dong-Kyu division chief of an on-line bookstore Morning 365 said, “another merger is under way. Reshuffle of business circle will be performed earlier than expected. ”

While concerning about Yes 24 becoming powerful in the market, companies are expecting profit to increase from decreasing cutthroat competition.

Joo Hwan-Soo head of marketing team from Aladdin forecasted, “on-line bookstores have competed reducing prices to the limit. A lot companies will make a profit when the competition is eased this year. ”

Seung-Jin Kim sarafina@donga.com