Kakao Entertainment to Merge with Melon Company This Year
Kakao Entertainment and Melon Company will be merging in the second half of the year.
On July 15 KST, media outlets reported that Kakao Entertainment and Melon Company will be merging the two companies. The merger is scheduled to be completed on September 1, after obtaining a final approval through a general meeting with the two company's shareholders to be held on July 30 KST.
Keep on reading to know more.
Kakao Entertainment to Merge with Melon Company This Year
Melon Company, which was spun off Kakao Entertainment on July 1, will join Kakao Entertainment in the form of a CIC (company in company) in September, with Melon Company being led by Lee Jae Wook as the CEO.
Even after the merging with Melon Company, Kakao Entertainment will continue to operate Kim Sung Soo and Lee Jin Soo as the CEOs.
The merger ratio between Kakao Entertainment and Melon Company is 1:7.8367918, and for each common share of Melon Company, 7.836791 common shares of Kakao Entertainment will be allocated.
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Kakao Entertainment, which was launched back in March, is the result of a merger of Kakao Page and Kakao M, making it the first large-scale merger between subsidiaries in Kakao.
In just a few months of its own large-scale merger, Kakao Entertainment is planning another large-scale meger with Melon.
The merger between Kakao Entertainment and Melon Company was decided in order to secure global competitveness and leadership in the entertainment industry.
Kakao Entertainment is looking at two trillion won (around $1.75 billion USD) in annual sales with the merger with Melon, which has established itself as the "No.1 digital music platform" operator since its launch in 2004.
Through the merger, Kakao Entertainment and Melon are expected to create a great synergy in the various business portfolios of both companies.
In particular, Kakao Entertainment's music content business, which has strengthened business competitveness by planning, producing, and investing in music platforms, is expected to lead the growth of the music industry with Melon Company's platforms.
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In addition, Kakao Entertainment has been conducting business across all fields of entertainment such as making of IPs (intellectual property), music, movies and dramas, digital content, live performances, and etc.
With this merger as an opportunity, Kakao Entertainment plans to further expand its business area and its influence within the entertainment industry, increasing its strength as a world-class leading company.
With this merger as an opportunity, Kakao Enter plans to further expand its business area and expand its influence in the entertainment industry, increasing its firepower to become a truly world-class leading company.
Regarding the merger of the two companies, Melon Company said that they expect to experience a jump through their strong connection with Kakao Entertainment, and will continue to lead the development of the domestic music industry and develop into a global entertainment company.
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Kakao Entertainment said that with the merger of Kakao Page and Kakao M, and now with the merger with Melon Company, their process itself is an innovation and is only their beginning. The company will build a strong entertainment business value chain and show global growth.
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Written by Robyn Joan
