[THE INVESTOR] Mobile messenger giant Kakao on Sept. 12 said it has injected 512.8 billion won (US$454.58 million) into its new subsidiary Kakao M, in return for the entire stake of 5.13 million shares.
Kakao M is a new subsidiary that was established on Aug. 8 to focus on music and video contents creation. It shares the same name with Kakao’s entertainment arm Kakao M, formerly Loen Entertainment, that was recently merged with Kakao.
Kakao is scheduled to take over shares of the new subsidiary on Nov. 1.
The firm said it hasn’t decided on the head of the new subsidiary, which is expected to be announced when Kakao M officially kicks off later this year.
With the latest move, Kakao M’s role within the tech giant is expected to grow in order to spread its contents globally.
“The new Kakao M will not only create contents but also grow into a company that expands intellectual property in Asia and globally, through active investments, mergers and acquisitions,” Kakao co-CEO Yeo Min-soo said at the Q2 conference call in August.
By Ahn Sung-mi (email@example.com)