Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek


Filed under: News | Latest Business News


Kakao Talk and Daum to Merge

May 26 2014, 3:10am CDT | by

1 Updates
Cosmic Collision sent Chelyabinsk Asteroid Towards Earth

YouTube Videos Comments

Full Story

Kakao Talk and Daum to Merge

SEOUL, South Korea (AP) — Mobile messenger service Kakao Talk is seeking a backdoor listing on the South Korean stock exchange by combining with the country's second largest Internet portal.

Kakao Corp. and stock exchange-listed Daum Communications Corp. said Monday that Kakao shareholders will get 1.556 Daum shares for each Kakao share they own.

If the deal gets approval from a meeting of shareholders in August, shares in the new entity called Daum Kakao will start trading in October. Kakao's founder Brian Kim will be the largest shareholder in the new entity. Its market capitalization is expected to be more than 3 trillion won ($2.9 billion).

The deal is the latest in series of mergers and acquisitions in the mobile messenger app market. Earlier this year, Facebook announced a takeover of WhatsApp for $19 billion and Japan's Rakuten said it will buy Viber for $900 million.

Kakao Talk is South Korea's most popular mobile messaging service for smartphones. But it has struggled in overseas markets dominated by other mobile apps such as WhatsApp, Line and WeChat.

Daum's web portal has been a perennial runner-up to Naver, which dominates the South Korea's Internet market. Its mobile Internet services, such as a messenger app, have been unpopular.

Naver owns Line, which has about 400 million users. The app has been a cash cow for Naver and helped it expand overseas while also adding to competition for Daum and Kakao.

Daum CEO Saehoon Choi said the two companies offer strengths that each is in need of.

Daum, which has 2,600 employees, gets a boost in its mobile service while Kakao, with 600 staff, gets additional resources, such as engineers at Daum, to challenge Line and other messaging apps overseas.

"There was a consensus that we will certainly face a limit in growing organically. It takes too much time to recruit employees one by one and to start a new business one by one," Sirgoo Lee, CEO at Kakao told reporters. "If we work with Daum, we will save time and upgrade services."

The two CEOs declined to discuss their business plans overseas.

Hana Daetoo Securities said in a report that Kim, the Kakao founder, will control 33 percent of Daum Kakao. The report said Daum's founder Lee Jae-woong's stake in the new entity will be 6 percent.


You Might Also Like


Sponsored Update


More From the Web

Shopping Deals


<a href="/latest_stories/all/all/30" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.




blog comments powered by Disqus

Latest stories

Getty Images
Courteney Cox at 50: 'Friends' star dazzles in smoking-hot bikini
The adorable actress, known for her role in U.S. sitcom, "Friends," is making waves in a 50-is-the-new-21 way.
George Takei came out because of Arnold Schwarzenegger
George Takei came out because of Arnold Schwarzenegger
Legendary Star Trek actor reveals why he came out. The reason is no other than Terminator actor Arnold Schwarzenegger.
Miss America 2014 Parade to Feature First Ever 3D Printed Shoes
Miss America 2014 Parade to Feature First Ever 3D Printed Shoes
Thanks to Maggie Bridges and Georgia Tech, we will see the first 3D printed shoes on the stage of the shoe parade
Vicki Gunvalson Flirting With David Beador
Vicki Gunvalson Flirting With David Beador
The Real Housewives of Orange County star Vicki Gunvalson admitted flirting with "hot" co-star David Beador

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.