Just In: Kakao Entertainment and Melon are all set to merge together on September 1

2 weeks ago  |  67.4K
   
The official logo of Kakao Entertainment (Pic credit - Kakao Entertainment0
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According to reports, the two top-rated entertainment companies based in South Korea reached an agreement to merge on July 15 KST; and their official merger is scheduled for September 1! The merger ratio between Kakao and Melon is reported to be 1:7.8, which means that for each share of Melon 7.8 shares of Kakao Entertainment, will be allocated.

For those unversed, Kakao Entertainment and Melon are two of the biggest and most important entertainment companies based in South Korea. Kakao Entertainment is a mass media and publishing company founded in 2021. A subsidiary of the internet company Kakao, it was established as a result of the merger of the latter's two subsidiaries- KakaoPage and Kakao M respectively. Meanwhile, Melon is a South Korean online music store and music streaming service introduced in November 2004 and developed by SK Telecom. Kakao M (previously called LOEN Entertainment) became the company in charge of the service in 2009. In 2017, Kakao merged Kakao Music into Melon to have one, unified music streaming service!

The local music provider will rebrand itself as 'Melon M'. Lee Jae Wook, who in 2018 had served as the chief of Kakao M, a subsidiary of Kakao, is expected to lead the nation‘s new music giant. The two companies aim to become a powerhouse, global entertainment company and work in synergy together to provide wholesome services to their audiences! Besides that, the companies are aiming for ₩ 2 trillion in annual sales through this merger.

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ALSO READ: Kakao M v Spotify Korea: K pop fans upset with Kakao M distributed songs disappearing from Spotify

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