Kakao Entertainment and Melon Company have introduced a merger this fall.
On July 15, each corporations selected a merger at their respective board conferences. The two corporations plan to finish the merger by September 1 after receiving closing approval at a normal assembly of shareholders on July 30.
Melon, which was spun off from Kakao on July 1, will be a part of Kakao Entertainment within the type of a CIC (company-in-company) in September. Melon Company will even be led by a brand new CEO, Lee Jae Wook. Even after the merger, Kakao Entertainment will proceed 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 frequent share of Melon, 7.836791 frequent shares of Kakao Entertainment shall be allotted.
Kakao Entertainment is itself the results of a merger between Kakao Page and Kakao M, the primary large-scale merger between Kakao subsidiaries that occurred again in March. Within just a few months of its creation, Kakao Entertainment is shaking up the leisure business once more by planning one other large-scale merger with Melon just some months after its personal merger.
This merger between Kakao Entertainment and Melon is meant to safe world competitiveness and management within the leisure business. Kakao Entertainment is anticipated to see annual gross sales of two trillion received (about $1.75 billion) by its merger with Melon, which has been established as a top-tier home digital music platform because it started operations in 2004. Melon presently has over 33 million normal members and over 5 million paid members. Melon has additionally hosted the Melon Music Awards since 2009, a serious component of the annual K-Pop award present scene, and operates numerous artist-driven audio content material like “Big Hit Music Record,” “SMing,” and extra.
Kakao Entertainment is a world leisure firm that plans and produces content material starting from unique story IP (mental property) corresponding to webtoons and internet novels to music, drama, motion pictures, digital content material, and stay performances. It owns over 8,500 IP corresponding to “Itaewon Class,” “What’s Wrong With Secretary Kim,” “The Uncanny Counter,” and “Navillera,” all of which have been made into hit dramas. Under Kakao Entertainment are six film and drama manufacturing corporations, together with its personal manufacturing studio, KakaoTV, in addition to Logos Film and Baram Pictures. Kakao can be affiliated with six administration corporations, together with BH Entertainment and Management SOOP, and 4 labels, together with Starship Entertainment.
Kakao Entertainment can be increasing into the North American content material market by buying Tapas and Radish, U.S.-based corporations specializing in internet novels and webtoons. It additionally goals to broaden its world base in mainland China, ASEAN (the Association of Southeast Asian Nations), Europe, and India within the second half of this 12 months.
Lee Jae Wook, the brand new CEO of Melon, served as Kakao M’s CEO and Kakao’s Chief Music Officer earlier than Kakao M merged into Kakao Entertainment. Kakao Entertainment CEOs Kim Sung Soo and Lee Jin Soo will help Lee Jae Wook because the merger strengthens Kakao Entertainment’s skills to regulate the whole planning and manufacturing technique of leisure content material, in addition to strengthen the interactions between totally different content material platforms like Melon (music) and unique content material (webtoons, and many others.).
Kakao Entertainment acknowledged, “Starting 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 beginning, and we will build a strong entertainment business value chain and show global growth to become a true world-class leading company.”
Melon acknowledged, “We expect that Melon, which has maintained its No. 1 position since we launched the service, will experience a quantum jump through our strong connection to Kakao Entertainment. We will continue to lead the development of the domestic music industry and grow into a global entertainment company.”
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