South Korea top mobile chat app, online portal merge

2014-05-26 09:32
Google's Android operating system will reach on billion devices. (Duncan Alfreds, News24)

Google's Android operating system will reach on billion devices. (Duncan Alfreds, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Seoul - South Korea's top messaging service provider, Kakao, and its second largest internet portal, Daum, announced a merger on Monday to create a one of the country's largest IT companies worth around $3bn.

Daum Communications, the operator of portal Daum.net, said the merger with Kakao, which runs the hugely popular mobile chat app Kakao Talk, would be completed in October through share swaps.

The move was aimed at "enhancing core businesses and creating business synergy", Daum said in a regulatory filing.

It said the swap ratio had been set at one Daum share for 1.55 Kakao shares.

The newly merged company - named Daum Kakao - will benefit from Kakao's popularity on mobile platforms as well as Daum's business clout and experience with internet searches and ad sales, the two firms said in a joint statement.

The deal "will put us in a strong position to respond to fast-changing global market", Kakao chief executive Lee Seok-Woo said in the statement.

Shares

The merged company will be better positioned to compete with South Korea's dominant internet portal Naver which operates Line, a messaging service and rival to Kakao Talk that is popular in Japan and Southeast Asia.

Kakao Talk is used by more than 140 million people globally, including some 35 million South Koreans - more than 90% of the country's smartphone users.

Founded in 2007, Kakao has not gone public yet, but its shares are traded over the counter in Seoul and it has an estimated market value of two trillion won ($1.9bn).

The company's founder Kim Beom-Soo has a leading 30% stake in Kakao and a venture company Kim owns also has 23.7% shares.

Chinese internet giant Tencent also has a 13.3% stake.

South Korea is one of the world's most wired countries, with 37 million owning a smartphone out of a population of 50 million.
Read more on:    internet  |  mobile
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

13 summer safety tips

Summer time and the burning is easy. Get some great tips to ensure sunburn doesn't spoil your holiday!

 
 

I love summer.24

This sleeping bulldog is you during the holidays
This man's reaction to his Christmas present is priceless!
LOL! Cats destroying Christmas trees
Great tips for surviving the holidays

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

30% off the bestselling books

Save big on the most captivating reads of 2014. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may feel more sensitive than usual and there may be something or someone blocking the flow of things. There is a strong desire...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.