SEOUL, Jan. 25, 2021 – The Board of Directors of Kakao Page Corp. and Kakao M Corp. announced today they approved a merger of the two companies to form a combined company, Kakao Entertainment. The two companies will hold a general shareholders’ meeting on January 26 and expect to complete the merger on March 1.
Kakao Page and Kakao M come together to create one of the largest Korean entertainment companies, which will generate over KRW 1 trillion in annual revenues. The strategic merger was approved to give Kakao Entertainment a competitive edge in the market at a time when the global entertainment industry is seeing heated competition with the emergence of new players. This is the first-ever large-scale merger between subsidiaries of Kakao Corp., the technology conglomerate behind Korea’s most popular messaging app KakaoTalk.
The merger is expected to produce strong synergy between the two companies, given their unique capabilities in the content business and digital platform space, and set the ground for Kakao Entertainment’s next stage of growth through global expansion.
Through the merger, Kakao Entertainment will have an unparalleled business portfolio and value chain including 50 subsidiaries and affiliates across major verticals of the entertainment industry. Kakao Page provides a specialized value chain optimized to produce original webtoon and web novel content as well as a global platform network, while Kakao M provides expertise in creating music, TV series, and films as well as a portfolio of Korea’s top creative talent.
Upon this foundation, Kakao Entertainment will expand its investment and strategic partnerships with industry leaders to grow into a global entertainment player. The company will not only diversify its business but also focus on producing blockbuster media franchises that can captivate global audiences and seek various ways to create synergies among combined assets.
“The merger of Kakao Page and Kakao M is that of a strategic alliance to build a foundation to compete in the global entertainment industry. By combining the two companies’ business acumen, capabilities and value chain, we aim to disrupt the global entertainment industry,” said Kakao Page through a statement.
“The decision to merge our expertise in content and digital platforms was made so we can compete in the hyper-competitive global entertainment sector in earnest. Together we can accelerate and evolve into a global player,” Kakao M said.