Social software Kaokao acquires artist company for US$1.54 billion to create a new content platform

According to South Korean media, South Korean mobile information service provider Kakao announced on the 12th that in order to expand the field of life services, it will acquire a 76.4% stake in integrated music and culture company Loen Entertainment for 1.87 trillion won (approximately RMB 10.3 billion). Loen's main business is artist distribution. Through this acquisition, Kakao's mobile platform competitiveness can be combined with Loen's advantages in music and cultural content to create a new cultural content platform.

Original title: Kakao bought an artist distribution company for $1.54 billion, making stars a common idea for monetizing social products?

According to South Korean media, South Korean mobile information service provider Kakao announced on the 12th that in order to expand the field of life services, it will acquire a 76.4% stake in integrated music and culture company Loen Entertainment for 1.87 trillion won (approximately RMB 10.3 billion).

South Korean artist IU

Loen is a subsidiary of South Korean telecommunications company SK. Its main business is artist distribution. The more well-known ones include IU, which has become popular in the mainland recently, and Sun Jiaren. Its products also include South Korean entertainment music website MelOn, which has 3.6 million paid members, whose main business includes music rental services and produces some list content.

Kakao said that through this acquisition, Kakao's mobile platform competitiveness can be combined with Loen's advantages in music and cultural content to create a new cultural content platform. Obviously, Loen's capabilities in content production and star creation have been recognized by Kakao. With this acquisition, Kakao will adjust its existing business and develop music communities, smart music playlists, and user data operations. Kakao hopes that users can generate social behaviors based on interests and hobbies on its platform.

Under the leadership of CEO Jimmy Rim, Kakao has transformed from an instant messaging tool to a development strategy involving music and entertainment. Rim believes that the completion of this merger will not only continue to maintain Kakao's influence in South Korea, but also rely on Korean pop music to expand its overseas business.

In fact, the development of social products into entertainment is a common idea. Recently, Momo has also put the star-making plan on the agenda to enrich the product's ability to commercialize and monetize it.

Editor: kong