Kakao Entertainment and Melon Company have decided to merge at their respective board meetings on July 15 and will officially merge on September 1 after final approval is obtained through a general meeting of shareholders on July 30.
The merger ratio between Kakao and Melon will be 1:7.8367918 each, and for each common share of Melon Company, 7.836791 shares of Kakao will be allocated.
Based on the fact that Melon, the strongest music distribution platform, has joined Kakao Entertainment, which has been conducting business across all fields and genres in the entertainment industry, it will allow both companies to grow in value. With this merger opportunity, Kakao plans to further expand its business area and expand its influence in the entertainment industry.
Kakao Entertainment stated, “Continuing from the merger of Kakao Page and Kakao M, this merger with Melon Company itself is an innovation and is the only the beginning as a global entertainment company. Through this merger, Kakao Entertainment will establish a unique and powerful entertainment business value chain that cannot be found anywhere in the world. We will use Kakao Entertainment’s success equation to create a world-class leading company in the global entertainment industry.”
Melon Company stated, “Since the service launched, Melon has maintained its number one position and is expected to make a quantum jump through a strong bond with Kakao Entertainment. We hope to lead the development of the domestic music industry and grow into a global entertainment company with Kakao Entertainment.”