Kakao M and Kakao Page announced they had finalized the necessary merger procedures, officially launching the global platform Kakao Entertainment Company. According to the two companies, they merged their capabilities to advance global market competitiveness and create synergy. In January, the companies’ board of directors approved the merger and finalized the plan in a general shareholders’ meeting. Both companies expect Kakao Entertainment’s annual sales to reach around 1 trillion won ($885.6 million) with the merger deal.
“Kakao Entertainment has built a business portfolio and value chain that encompasses all content genres,” said Lee Jin-Soo, Co-CEO of Kakao Entertainment. “Based on the common DNA of both companies that have grown and evolved through innovation, they have an influence in the global entertainment industry through differentiated global competitiveness.”
Entering the Global Entertainment Industry
By combining Kakao M and Kakao Page’s business capacities and international networks, Kakao Entertainment offers a diverse content spectrum. Some of Kakao Entertainment’s content includes dramas, movies, music, videos, live performances, webcomics, web novels, and other entertainment platforms. Under the ‘company in company’ system, Kakao Entertainment would serve as a representative system, and both companies would continue to operate businesses as M Company and Page Company independently.
M Company would manage businesses involving music recording, talent recruiting, video and movie streaming, concert production, and other digital content. Page Company would operate a web novel and webtoon platform, supporting a library of over 8,500 original material from creators. Moreover, Kakao Entertainment created the ‘Synergy Center,’ a special division that establishes synergy strategies for business units and its members.
Aside from becoming a leading entertainment provider, Kakao Entertainment plans to promote K-entertainment’s growth through partnerships with various companies. With the ‘Entertain Different’ vision, the company plans to continue developing innovative content with creators to expand its global networks. In line with its global expansion, Kakao Entertainment will expand IP content in various entertainment fields using accumulated business know-how.
Kakao Entertainment also promotes business diversification through incorporating new operational models with existing ones. Additionally, Kakao Entertainment Co-CEO Kim Seong-Soo stated that the company targets developing innovative content and investing in intellectual properties.
