- Published 2026.11.06 11:54
Discloses 13.83 million shares held with SEC, exercises sole disposal rights
Uses post-Nasdaq listing price correction as buying opportunity
Global asset manager Fidelity (FMR LLC) has secured a 10.2% stake in Webtoon Entertainment, a subsidiary of Naver. It has been increasing its stake amid heightened share price volatility since the company's Nasdaq listing in 2024, solidifying its position as a major shareholder.
According to a U.S. Securities and Exchange Commission (SEC) filing on Nov. 6, Fidelity and Abigail Johnson, chairman of Fidelity, reported holding 10.2% (13,833,054 shares) of Webtoon Entertainment as of Nov. 5 (local time). The filing reflects holdings as of Sept. 30. Fidelity has sole voting power over 13,832,581 of these shares and sole dispositive power over all 13,833,054 shares.
Webtoon Entertainment listed on the Nasdaq in June 2024 at an offering price of $21, entering the global content market. However, its recent earnings fell short of market expectations, sending the stock down to around $10. According to U.S. financial media Seeking Alpha, Webtoon Entertainment's revenue in the third quarter of this year rose about 9% year-on-year, but active users fell by 14.5 million and adjusted EBITDA plunged, putting downward pressure on the stock.
Fidelity used the share price decline as an opportunity to increase its stake. Fidelity said in a recent fund management report that it viewed the drop in Webtoon Entertainment's share price as a buying opportunity and added to its position. Fidelity holds Webtoon Entertainment shares across multiple funds, including its Emerging Markets Fund. According to SEC filings, Naver is the largest shareholder with 59.4%, followed by LY Corp. with 23.2%. Fidelity's purchase brings its stake to the level of the third-largest shareholder.
In the filing, Fidelity said the stake acquisition was "not for the purpose of changing or influencing control of the issuer, and was acquired in the ordinary course of business." As the stake increase was for pure investment purposes, whether Webtoon Entertainment can improve profitability in North America and other global markets and expand its intellectual property (IP) business to regain its early post-listing growth will be a key factor determining the stock's future performance.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
