Kakao to acquire MelOn operatorMadeinkoreablog
Kakao Corp., the country’s leading mobile messenger operator said on Monday that it will acquire a controlling stake in music streaming company LOEN Entertainment.
Kakao will purchase a 76.4 percent stake worth 1.87 trillion won ($1.54 billion) in LOEN, operator of MelOn.
Kakao’s mobile messenger KakaoTalk is used by around two-thirds of South Korea’s 50-million population. LOEN’s MelOn has 28 million local users.
“Music is one of the most loved content genres in the mobile era,” said Jimmy Rim, CEO of Kakao. “One song can set trends for an entire generation and highly influence global pop culture.”
He added that he expects the partnership with MelOn to help provide momentum for Kakao’s global debut. The company has yet to state a date or release specific information about when Kakao will officially launch worldwide services.