Lead

South Korea's Naver Corp. said Tuesday it has yet to decide on the acquisition of Woowa Brothers Corp., the operator of the country's largest food delivery app Baedal Minjok, also known as Baemin. In a regulatory filing, the company said it is "exploring various options to strengthen business competitiveness," but no specific decisions have been made, according to Yonhap News Agency.

The statement follows media reports that Naver and Uber were seeking to form a consortium to acquire Woowa Brothers from German delivery platform Delivery Hero. Reports have suggested the two companies proposed paying about 8 trillion won ($5.37 billion) for the entire stake, though neither firm has confirmed these figures.

The potential sale comes amid broader industry consolidation in the food delivery sector and as Delivery Hero conducts a strategic review of its portfolio, having recently sold its Taiwan business to Grab.

Coverage Comparison

All reporting on this story comes from Yonhap News Agency, South Korea's leading wire service, published on different dates. The earliest report, dated May 14, focused on Delivery Hero's intent to sell Woowa Brothers, citing industry sources. It said Delivery Hero had appointed JPMorgan Chase & Co. as sales adviser and was seeking around 8 trillion won, with teaser materials distributed to potential investors including Naver.

A second Yonhap report on May 19 centered on Uber's additional investment in Delivery Hero, which made Uber the largest shareholder with a 19.5% stake plus options. That report also linked the investment to the ongoing speculation about a possible Uber-Naver consortium bid for Woowa Brothers.

The third Yonhap report, also May 19, featured Naver's regulatory filing denying a decision had been made, and included a commitment to announce details within one month if a decision is reached. All three reports are consistent on key facts: the general sales process, the approximate price, and the appointment of JPMorgan as adviser. None of the reports include comment from Uber, Naver, or Delivery Hero beyond the official statements noted.

Key Claims

  • Naver has not made a decision on acquiring Woowa Brothers. This is based on Naver's regulatory filing, carried by all three Yonhap reports. The company said it is exploring options but has not made specific decisions.
  • Naver may disclose details within one month if a decision is made. This commitment came from the regulatory filing and is reported in one Yonhap article (May 19, filed by Yonhap's fairydust). It has not been independently confirmed by Naver beyond its filing.
  • Delivery Hero is seeking around 8 trillion won ($5.37 billion) for Woowa Brothers. This figure is reported by all three Yonhap articles, though attributed to "industry sources" or "media reports." Delivery Hero has not publicly confirmed a specific asking price.
  • Uber and Naver reportedly proposed a joint acquisition at that price. Two of the three Yonhap reports (May 19) mention the proposed 8-to-2 consortium and the 8 trillion won offer. This is based on unnamed media reports and has not been confirmed by any party.
  • Uber acquired an additional stake in Delivery Hero, becoming its largest shareholder. This was announced by Delivery Hero on May 19, per Yonhap. Uber's stake rose to 19.5% of issued capital, plus options for another 5.6%. Media reports said Uber does not intend to increase its stake to 30%.
  • Delivery Hero acquired 87% of Woowa Brothers for about $4 billion in 2019. This fact is repeated in all three Yonhap reports, though no source beyond the reports themselves is cited. It is widely known historical information.
  • Delivery Hero appointed JPMorgan Chase & Co. as sales adviser. This is stated in all three reports, attributed to industry sources and not to Delivery Hero directly.

Perspectives

Naver's Perspective: As conveyed in its regulatory filing, Naver is open to exploring strategic options to improve competitiveness but is careful not to commit to any specific acquisition until detailed discussions or decisions occur. The one-month disclosure promise suggests a structured approach to any potential deal.

Delivery Hero's Perspective: The company has not commented directly on the sale of Woowa Brothers. However, its official statement on Uber's investment welcomed it as validation of its platform and strategy. A Delivery Hero official told Yonhap that the company is "conducting a comprehensive strategic review of its portfolio, asset allocation and overall cost structure," indicating a willingness to adjust its holdings.

Market and Investor Perspective: The reported 8 trillion won price tag — more than double what Delivery Hero paid in 2019 — reflects the significant growth of South Korea's food delivery market, but it also implies a high premium. Investors and analysts may view the potential acquisition as a defensive move by Naver to protect its position in local e-commerce and delivery, or as Uber's aggressive expansion into a market where it currently has limited presence.