Kakao Entertainment and Melon Company decided to merge their business after the respective board meetings that were held on July 15th of 2021. The merger is scheduled to be completed on September 1st 2021, after final approval is obtained through a general meeting of shareholders on the 30th. Here’s the full story of Melon Kakao Entertainment Merger
Melon Kakao Entertainment Merger
As a result, Melon Company which was spun off from Kakao on the 1st, will join Kakao Entertainment in September as a CIC (in-house independent company), and Melon Company will be newly led by the CEO Lee Jae-Wook. But after merging with Melon Company, Kakao Entertainment will still continue to have Kim Seong-Soo and Lee Jin-Soo as representatives.
The merger ratio between Kakao Entertainment and Melon is 1:7.8367918 each, and 7.836791 shares of Kakao Entertainment are allocated for each common share of Melon Company. These two companies are expected to take the lead in the entertainment industry.
This merger is based on Melon, the main music distribution platform, and has joined Kakao Entertainment, which has been doing business across all fields of the entertainment industry such as music, video, IP, digital, and performance. By doing all stages from planning, production to distribution in all areas of entertainment, Kakao Entertainment has a unique business portfolio and value chain. With this merger, Kakao Entertainment plans to further expand its business area and expand its influence in the entertainment industry, increasing its power to become a truly world-class leading company.
There is also a lot of interest in Melon Company’s new head, Lee Jae-wook. Lee Jae-Wook, the CEO of Kakao, is the best music platform and music industry expert in Korea who served as Kakao M CEO and Kakao CMO (Chief Music Officer) before the merger with Kakao. Based on a high understanding and affection for Melon and the music industry, it is expected that Melon will further solidify its status as the No. 1 platform and lead synergy with Kakao Entertainment.
About Kakao Entertainment
Kakao Entertainment is a merger between Kakao Page and Kakao M that was done earlier this March. Below Kakao Entertainment, there are six production houses including KakaoTV, Logos Film, and Baram Pictures. Kakao is also affiliated with six management companies including BH Entertainment, SOOP Management, and Starship Entertainment.
About Melon Company
Melon is known as the main music chart in Korea. Melon Company has been doing Melon Music Awards since 2009, an annual music awards show in Korea. Melon Company has a million thousand members on its platform.
Melon Kakao Entertainment Merger Expectation
The process from the merger in Kakao Entertainment which are Kakao Page and Kakao M to the bigger merger with Melon Company will be an innovation and as the beginning to become a global entertainment company. Kakao Entertainment has built a strong entertainment business value chain and laid a global growth engine. They aim to be reborn as a world-class company leading in the global entertainment industry.
Melon Company stated that since the service was launched, Melon will lead the development of the domestic music industry and grow into a global entertainment company.”
We hope the merger between two companies won’t affect the artists and us as fans, remembering the clash that happened with Kakao Entertainment and Spotify. So, will the merger make these two companies monopoly the Korean music industry? What do you think?