Gaining a competitive edge in a hyper-competitive market, Kakao Page and Kakao M resolve to merge the two companies into a new entity called KAKAO ENTERTAINMENT.
The Board of Directors of both companies announced that the creation of the Korean entertainment giant is expected to complete on March 1, 2021 and marks the first ever large-scale merger between subsidiaries of Kakao Corp., the technology conglomerate behind Korea’s most popular messaging app Kakao Talk.
“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,” Kakao Page commented. “By combining the two companies’ business acumen, capabilities and value chain, we aim to disrupt the global entertainment industry.”
The launch of KAKAO ENTERTAINMENT is set to generate over KRW 1 trillion in annual revenue and signals the company’s pursuit to create synergies between combined assets and diversify its business through strategic partnerships to produce blockbuster media franchises that can captivate global audiences. Kakao Page will support the foundation of KAKAO ENTERTAINMENT by offering a global platform network and a specialized value chain optimized to produce original contents while Kakao M will provide expertise in creating music, TV series, films, performances, along with a portfolio of Korea’s top creative talent.
“The decision to merge our expertise in contents 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 added.