SEOUL: South Korea’s top messaging service provider, Kakao Corp, and its second largest Internet portal, Daum, announced a merger yesterday to create a company with an estimated market value of $3bn.
Daum Communications, the operator of portal Daum.net, said the merger with Kakao, which runs the hugely popular mobile chat app Kakao Talk, would be completed in October through share swaps.
The move was aimed at “enhancing core businesses and creating business synergy”, Daum said in a regulatory filing.
It said the swap ratio had been set at one Daum share for 1.55 Kakao shares. Kakao Talk is used by more than 140 million people globally, including some 35 million South Koreans — more than 90 percent of the country’s smartphone users.