Kakao Inc. Acquires MelOn for 1.87 Trillion Won
As of January 11, communications giant Kakao Inc. has acquired a 76.4 percent stake in Loen Entertainment, the company behind MelOn, for 1.87 trillion won (approximately $1.56 billion).
MelOn is the biggest music content provider in Korea. Amongst the international community, it is mostly known for its use by fans to purchase digital music and streaming passes to support their favorite musicians on music shows. Kakao plans to use the acquisition to add music streaming to its already numerous services (including messaging, games, and even as a payment platform). Meanwhile, Loen plans to use the funds from the acquisition to further expand its music platform with social-media based services.
What do you think of the acquisition?