[THE INVESTOR] SK Telecom on July 5 expressed regrets at the antitrust watchdog’s disapproval of its planned merger with the nation’s No. 1 cable TV operator CJ HelloVision.
The company had planned to merge its Internet TV affiliate SK Broadband with the CJ unit, becoming the nation’s second-largest paid TV operator and the No. 1 in the long term. The deal price was estimated at 1 trillion won (US$823 million).
“The watchdog’s decision comes as a shock,” the company said in a statement. “We express regrets about our failed merger plan that had aimed to contribute to the growth of the nation’s paid TV market.”
The company added: “After thoroughly reviewing the evaluation report, we will come up with countermeasures.”
After months of evaluation, the Fair Trade Commission on July 4 informed its disapproval of the merger between SK Broadband and CJ HelloVision, citing antitrust issues.
SK Telecom was pushing for the merger, calling it crucial for its survival in the highly competitive market, while rivals KT and LG Uplus, together with other smaller players in the market, had claimed that the merger could harm fair competition and increase consumer prices overall.
By Lee Ji-yoon (jylee@heraldcorp.com)
