Kakao marriage one of South Korea’s biggest portal, paving the way for an IPO in October

Korea first SMS service developer Kakao Talk Kakao company and one of South Korea’s biggest portal Daum announced today the merger through the equity transfer, become a market capitalization of 3.4 trillion won ($2.9 billion) of the company. If the transaction is successful, combined company will be listed in October.

Kaokao Daum and therefore is likely to become one of South Korea’s biggest Internet company, and will be with South Korea’s largest web portals, Kaokao Talk competitors Line Naver developers to get a better position of competition. Line position by the end of 2015 the number of user goals in 1 billion, and has reached about 400 million people in the year to April, and at the same time, about 130 million people in the use of Kakao Talk.

in Facebook for $19 billion Whatsapp and Japan Internet giant ex $900 million deal to buy Viber soon today, Kakao followed by a merger with Daum news. According to a report in the Wall Street journal survey, Kakao had been in the domestic plans to submit a book could be as high as $2 billion worth of ipos.

on the other hand, Daum company said in a statement, “this merger will consolidate the core business and create positive synergies.” For Daum, the deal means an opportunity to expand its mobile products. As in other countries, including yahoo and baidu, as users are more time spent on smart phones and tablets, Daum also working to develop a comprehensive mobile strategy.

on the other hand, in addition to can make the company profitable mobile gaming platform, Kakao now can bring more revenue resource. Companies in recent days, however, try to toward diversified development, gradually developed such as news services, streaming music platform, photo sharing application and similar Path of social network, etc.

Via: TC