Korea portal Daum merger trading mobile app developer Kakao formally set up new company

August 28 News, according to South Korea's Chosun Ilbo reported that the Korean portal Daum and mobile phone application developers Kakao merger transaction passed the final legal process approval, the new company October 1 was formally established.

Daum and Kakao held separate general meeting of shareholders, the General Assembly approved the merger agreement of two companies. The shareholders ' meeting is the last legal process on the road to Daum and Kakao mergers.

"Kakao plans to take the initiative in the mobile era by merging with Daum, believing that the merged new company will develop into a new life platform provider," Akaka, Kakao president, said at a shareholder meeting. ”

The new company "Daum Kakao" will be formally established on October 1. Daum operates a South Korean portal, Kakao is the developer of an instant messaging application Kakao Talk.

With the closing price of two companies on August 26, Daum's total market capitalisation of about 2.2 trillion won, plus Kakao's corporate value, is expected to be close to 10 trillion won (near $10 billion) for the company's total market capitalisation.

The Chosun Ilbo review said the establishment of the new company would bring significant changes to the country's IT market pattern, which naver the largest portal site. Naver is the controlling shareholder of the Instant Messaging application line. (Xiao Feng)