Daum-Kakao merger approvedUpdated: 2014-08-28 06:31:13 (KST)
The deal is sealed.
The merger of Daum Communications, Korea's second-largest Internet portal, and Kakao Corporation, the nation's number one mobile messaging service, was approved by all associated shareholders on Wednesday.
It comes three months after the two companies announced the merger through a stock swap arrangement.
'DaumKakao' will officially launch on October 1st and is expected to be co-led by Kakao CEO Lee Sir-goo and Daum CEO Choi Sae-hoon.
At the shareholders meeting Wednesday, Lee said he hoped the new company would not only have a reach in the domestic IT market, but also in the global market.
The merger is expected to impact Korea's top search engine provider Naver and its messaging service Line, which as of now have a much bigger global user base, compared to Kakao's messenger service Kakao Talk.
DaumKakao says the new company's services will not only be restricted to the online world, but that it will expand into a platform that can be used in everyday life.
The market capital of the new company could rise to over 10 trillion won or nearly 10 billion U.S. dollars, as Daum's current value is 2.2 billion dollars, and Kakao's is at around 9 billion dollars.
Industry watchers therefore expect DaumKako to eventually become the most valued company on the tech-heavy KOSDAQ stock exchange.
Kwon Soa, Arirang News.
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