KakaoPage and Kakao M Merge... Birth of 'Kakao Entertainment'

[Asia Economy Reporter Bu Aeri] Kakao Page and Kakao M are merging to launch 'Kakao Entertainment.' This is the first large-scale merger between Kakao subsidiaries, each with sales reaching hundreds of billions of won.

Kakao Page and Kakao M held a board meeting on the 25th and resolved to merge. Kakao Page is Kakao's subsidiary responsible for the webtoon business, while Kakao M handles entertainment businesses such as variety shows and dramas. The two companies plan to hold a shareholders' meeting on the 26th for final approval and complete the merger on March 1.

The merger will connect more than 50 subsidiaries and affiliates. Kakao Page, through continuous investment centered on webtoons and web novels, has built a network of 16 subsidiaries and affiliates and owns about 8,500 original story IPs, making it the largest IP company in Korea. Kakao M has planning and production capabilities, managing seven actor management companies and numerous drama, film, and production companies under its umbrella.

The two companies stated, "We decided to merge Kakao Page and Kakao M to gain competitiveness in the hyper-competitive global entertainment market," adding, "Through the combination of our business know-how, capabilities, and value chains, we will lead a new entertainment industry."