Kakao Corp.
Acquisitions
3
Major Deals Covered
This page covers 3 major deals from 2014 to 2023, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Daum Communications | 2014 | Undisclosed | Merger combining KakaoTalk with Daum's web portal and advertising business. |
| LOEN Entertainment (Melon) | 2016 | Undisclosed | Acquired South Korea's leading music streaming service and a music label. |
| SM Entertainment (controlling stake) | 2023 | Undisclosed | Secured control of the K-pop agency after a bidding contest with HYBE. |
2023
Secured control of the K-pop agency after a bidding contest with HYBE.
Added global K-pop IP to Kakao's content segment.
Led to the share manipulation case against the founder, who was acquitted at first instance in 2025.
2016
Acquired South Korea's leading music streaming service and a music label.
Became the core of Kakao M and later Kakao Entertainment.
Melon remains a key content asset.
2014
Merger combining KakaoTalk with Daum's web portal and advertising business.
Created Daum Kakao, renamed Kakao Corp. in 2015.
Gave Kakao a listed vehicle and an established ad sales business.
Kakao's strategy under Shina Chung has three parts: grow high-margin Talk Biz advertising and commerce inside KakaoTalk, add AI to the app through its Kanana models and an OpenAI partnership, and simplify the group by selling or merging non-core affiliates. The August 2026 split plan extends that by separating the AI platform from the capital-intensive subsidiaries. Kakao AI aims for roughly 20% annual revenue growth through 2030 from AI advertising, agentic commerce, and subscriptions.
Kakao reports two segments. Platform (~$3.07 billion (KRW 4.318 trillion), 53% of FY2025 revenue) includes Talk Biz, which sells Bizboard display ads, business message channels, gifting commissions, and emoticon subscriptions inside KakaoTalk; Portal Biz (Daum); and 'Platform Others' such as Kakao Mobility and Kakao Pay. Content (~$2.68 billion (KRW 3.781 trillion), 47%) includes Kakao Games, music (Melon and SM Entertainment), story (Piccoma and Kakao Webtoon), and media production. KakaoTalk keeps acquisition costs low because new services can be surfaced to tens of millions of existing users, while high-margin Talk Biz advertising carries most of the group's profit. By Q2 2026 Platform had grown to 59% of revenue.
In March 2023, Kakao and Kakao Entertainment completed a KRW 1.25 trillion ($960M USD) tender offer to acquire a 40% controlling stake in K-pop pioneer SM Entertainment, securing well-known music intellectual property and global idol groups (NCT, aespa, RIIZE).
In January 2016, Kakao acquired a 76.4% controlling stake in LOEN Entertainment (owner of South Korea's #1 music streaming service Melon) for $1.6 billion (KRW 1.87 trillion), providing immediate multi-hundred-million-dollar annual subscription cash flow.
In May 2021, Kakao Entertainment acquired US webtoon platform Tapas for $510 million and serialized fiction app Radish for $440 million, integrating North American digital storytelling platforms with Kakao's Korean webtoon IP.
In 2021, Kakao acquired leading Korean mobile fashion commerce app Zigzag (Croquis Inc.) for ~$710 million (KRW 1.0 trillion), integrating its visual recommendation engine and thousands of boutique fashion brands into Kakao Style.
In 2015, Kakao acquired mobile GPS navigation startup Loco&All (K-Navi) for ~$44 million (KRW 62 billion), integrating real-time traffic algorithms into Kakao Navi and powering Kakao Mobility's taxi dispatch routing.
In March 2023, Kakao Mobility acquired UK-based global mobility integration platform Splyt, connecting Kakao T with ride-hailing and public transit networks across 30+ countries worldwide.
In October 2014, Kakao merged with Daum Communications in a historic $3.1 billion transaction, acquiring Daum's web portal traffic, search advertising infrastructure, and public stock exchange listing.
Under CEO Shina Chung, Kakao focuses strictly on disciplined acquisitions that advance generative AI algorithms, global webtoon IP adaptation, K-pop global distribution, and core digital platform synergies.
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