Kakao rules out possibility of merging its content operations Tech giant makes it clear that Kakao Entertainment and Kakao Japan will operate separately
Translated by Ryu Ho-joung 공개 2021-04-15 08:27:32
이 기사는 2021년 04월 15일 08:11 thebell 에 표출된 기사입니다.
Kakao Corp has dismissed rumors of merging Kakao Entertainment with Kakao Japan, saying such an option “is not on the table at all.”Kakao Entertainment’s aggressive investments in foreign content businesses ignited the rumors.
The South Korean company is in the process of acquiring a controlling stake in Tapas Media, according to industry sources. It bought 2 million shares or a 10.89% stake in the U.S.-based online cartoon platform for $10.3 million last September.
Kakao Entertainment currently holds 40.4% of the company, and is estimated to need at least $28.53 million to purchase the remaining stake.
Kakao Entertainment is also aiming to acquire U.S. online fiction platform Radish. It bought some 12% of the company for 32.2 billion won ($28.8 million) last summer, and will likely need approximately 350 billion won to acquire the remaining stake given the storytelling platform’s latest valuation of 400 billion won.
In sum, at least 382.1 billion won will be needed for Kakao Entertainment to complete the acquisitions of the two platforms. However, it had 184.4 billion won in cash and cash equivalents as of the end of February. Its gross debt stood at 159.2 billion won, with short-term debt that is due within one year accounting for 127.6 billion won. This means that the company’s cash available for use is less than 60 billion won.
In contrast, Kakao Japan is in talks to raise about 750 billion won from private equity firm Anchor Equity Partners in a deal valuing it at 5 trillion won. This, combined with Kakao Entertainment’s cash needs, stoked the merger possibility.
“Both companies are operating well separately and are preparing for an initial public offering separately,” said an official at Kakao Corp.
An official at Kakao Entertainment said: “We will continue (our investments) by using cash on hand without harming our financial condition.”
The two companies have a strong business relationship. Kakao Entertainment, formerly known as Kakao Page, is a main source of content served on Kakao Japan’s comics app Piccoma. It also owns 21.6% of Kakao Japan. (Reporting by Hana Suh)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 시프트업 상장 예심 통과…공모구조 '신주 100%'
- '돈버는 바이오' 아이빔테크놀로지, 7개월만에 상장예심 통과
- 점점 느슨해지는 넷마블·하이브 '지분 동맹'
- 씨지피머트리얼즈, '세종캠퍼스 신공장 기공식' 개최
- 트루윈, '엣지파운드리'로 사명 변경 "AI 강화"
- '어닝 서프라이즈' 실리콘투, 중동·남미 확장 잰걸음
- 다이나믹디자인, 고부가 제품 덕 1분기 '흑자 전환'
- [정육각은 지금]'흑기사' 캡스톤·에이티넘의 지원, 급한 불 껐다
- [thebell interview/LLC형 VC 톺아보기]김중완 비하이인베 대표 "우보천리 철학 이어갈 것"
- [Red & Blue]톱티어 VC LB인베, UAE 10억달러 업고 주가 ‘훨훨’