Kakao Entertainment and Melon Company announced a merger this fall.
On July 15, the two companies decided to merge during their respective board meetings. The two companies plan to complete the merger by September 1 after receiving final approval at a general meeting of shareholders on July 30.
Melon, which was split from Kakao on July 1, will join Kakao Entertainment as a CIC (company-in-company) in September. Melon Company will also be headed by a new CEO, Lee Jae Wook. Even after the merger, Kakao Entertainment will continue to be led by Kim Sung Soo and Lee Jin Soo as CEOs.
The merger ratio between Kakao Entertainment and Melon is 1: 7.8367918, which means that for every common share of Melon, 7.836791 common shares of Kakao Entertainment will be awarded.
Kakao Entertainment is itself the result of a merger between Kakao Page and Kakao M, the first large-scale merger between Kakao subsidiaries that took place in March. A few months after its inception, Kakao Entertainment is once again shaking up the entertainment industry by planning a new large-scale merger with Melon just months after its own merger.
This merger between Kakao Entertainment and Melon aims to ensure global competitiveness and leadership in the entertainment industry. Kakao Entertainment is expected to achieve annual sales of 2,000 billion won (approximately $ 1.75 billion) through its merger with Melon, which has been established as a leading national digital music platform since its inception. activities in 2004. Melon currently has members and over 5 million paying members. Melon has also hosted the Melon Music Awards since 2009, a major feature of the annual K-pop awards scene, and operates a variety of artist-led audio content such as “Big Hit Music Record”, “SMing” and more.
Kakao Entertainment is a global entertainment company that plans and produces content ranging from original IP (intellectual property) stories such as webtoons and web novels to music, theater, movies, digital content and live performances. direct. He owns over 8,500 IPs such as “Itaewon Class”, “What’s Wrong With Secretary Kim”, “The Uncanny Counter” and “Navillera”, all of which have been turned into hit dramas. Under Kakao Entertainment are six film and drama production companies, including its own production studio, KakaoTV, as well as Logos Film and Baram Pictures. Kakao is also affiliated with six management companies, including BH Entertainment and Management SOOP, and four labels, including Starship Entertainment.
Kakao Entertainment is also expanding into the North American content market by acquiring Tapas and Radis, American companies specializing in web novels and webtoons. It also aims to expand its global base in mainland China, ASEAN (Association of Southeast Asian Nations), Europe and India during the second half of this year.
Lee Jae Wook, the new CEO of Melon, was CEO of Kakao M and Music Director of Kakao before Kakao M merged with Kakao Entertainment. Kakao Entertainment CEOs Kim Sung Soo and Lee Jin Soo will support Lee Jae Wook as merger strengthens Kakao Entertainment’s ability to control the entire entertainment content planning and production process, as well as strengthen interactions between different content platforms such as Melon (music) and original content (webtoons, etc.).
Kakao Entertainment said, âStarting with the merger of Kakao Page and Kakao M and now with the merger with Melon, our process itself is ‘innovation’. This is only our start, and we will build a strong entertainment business value chain and show global growth to become a truly world-class leading company. “
Melon said, âWe expect Melon, which has maintained its # 1 position since we launched the service, to experience a leap forward thanks to our strong connection with Kakao Entertainment. We will continue to lead the development of the domestic music industry and become a global entertainment enterprise. “
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