Way back in May, it was reported that South Korea’s second-largest search engine Daum and Kakao, the company behind KakaoTalk would be merging.
Shareholders of both companies have reportedly approved the merger which will result in Kakao’s listing with a value of over $3 billion. The deal will be completed in October and allows Kakao to sidestep having to go through a similar IPO process that KakaoTalk competitor LINE is looking into.
60 percent of the newly combined company will be owned by Kakao shareholders
The joining together of these two companies will allow KakaoTalk to better compete with the likes of LINE, WhatsApp and WeChat in the vast global messaging space.
According to regulatory filings, Daum will issue 43 million new shares to Kakao shareholders based on a valuation of 72,910 won per share, valuing the South Korean firm at 3.1 trillion Korean won ($3.06 billion). 60 percent of the newly combined company will be owned by Kakao shareholders.
The combined company will also have two chief execs according to Reuters, which include Kakao co-CEO Lee Sir-goo and Daum CEO Choi Sae-hoon.
KakaoTalk is available on most major platforms.