Kakao Page and Kakao M announced Monday that they would merge into a new entity, Kakao Entertainment. The merger, which was agreed during the board of directors meetings of the two firms earlier that day, will be finalized through a general shareholders meeting on Tuesday.
The biggest merger between the two subsidiaries of South Korea’s mobile tech conglomerate Kakao, the move aims to create synergy given the two companies’ respective capabilities in the content business and digital platforms. Kakao Entertainment said it expected to generate over 1 trillion won of annual revenues through the merger.
Kakao Entertainment will boast an expansive business portfolio and value chain, spreading over 50 subsidiaries and affiliates across all verticals of the entertainment industry.
Logos of Kakao Page and Kakao M (Kakao Page Corp.)
Kakao Page currently provides a specialized value chain optimized to produce original contents as well as a global platform network. The firm now has 16 subsidiaries that have contributed to the production of around 8,500 intellectual property rights of original titles, while constructing a global network of diverse digital platforms through which they could monetize the intellectual property.
Kakao M provides expertise in creating music, TV content, films, performances, and the management of Korea’s top creative talent. Investing in seven leading talent management agencies, four music labels and diverse content producers of TV dramas, films and stage performances, Kakao M annually produces over 1,200 titles distributed through various digital platforms, including its own Kakao TV channel launched last September.
The merger of Kakao Page and Kakao M into Kakao Entertainment is expected to be completed on March 1.
By Choi Ji-won (email@example.com)