Delivery Hero Seeks Up to $6B for Baemin; Naver (035420.KS) Steps Back from Bid

Delivery Hero (DH), the German food delivery conglomerate, is running a formal sale process for Woowa Brothers, the Seoul-based operator of South Korea's leading delivery platform Baemin. The deal is being marketed at a valuation of up to ₩8 trillion (approximately $6 billion), equivalent to a roughly 13x EV/EBIT multiple based on Woowa's estimated ₩600 billion annual operating profit.

Financial Profile

Woowa Brothers generates about 20% of DH's combined annual revenue of approximately ₩25 trillion (~$18.6 billion). The operating margin and dominant market position in South Korean food delivery make it DH's most profitable regional asset. A successful disposal would allow DH to reduce leverage and refocus on its Southeast Asian and European markets.

Buyer Landscape

Naver (035420.KS), long considered the most natural domestic acquirer given its Naver Pay network and e-commerce ecosystem, has publicly distanced itself, with a spokesperson stating: "Nothing has been decided." Analysts attribute the hesitation to antitrust risk — Naver already faces scrutiny for its dominant positions in search and payments, and acquiring South Korea's largest food delivery platform would trigger intensive Korea Fair Trade Commission review.

Uber ($UBER) holds an existing 19.5% stake in DH, with options to lift that to 25.1%, making a direct Baemin acquisition less capital-efficient than an incremental DH stake increase. Alibaba and DoorDash ($DASH) have reportedly been approached but are not understood to be in active negotiations.

The Stakeholder Complexity Barrier

A structural concern for any Korean conglomerate buyer is the platform's dense web of small merchant contracts and delivery rider agreements. Any dominant new owner that raises commission rates or worsens rider terms would face immediate political and regulatory backlash — a factor industry sources cite as the primary reason major chaebol have kept their distance.

What to Watch

The process is at the preliminary bidding stage with no completion timeline disclosed. Private equity buyers — particularly global logistics-focused funds — are viewed as potential wild cards. An M&A outcome could affect the competitive positioning of Naver (035420.KS) and Kakao (035720.KS), whose delivery and e-commerce ambitions overlap with Baemin's territory.

Not investment advice. Verify all figures with primary sources before acting.