KakaoM Original Video Content Production Becomes Visible

Raised 210 Billion KRW Investment from Anchor Equity Partners
Announces Original Video Content Production "We Will Create Unique Content"

[Asia Economy Reporter Jonggil Lee] Kakao M has laid the groundwork to produce original video content. It secured an investment worth approximately 210 billion KRW from Hong Kong-based private equity firm Anchor Equity Partners and others.

On the 16th, Kakao M announced that Anchor Equity Partners and others acquired 1,147,974 newly issued shares through a third-party allotment paid-in capital increase. When converted to cash, this amounts to about 210 billion KRW. This is the largest overseas investment attracted by a domestic content company this year. Kakao M explained, "With this investment, the company's valuation rose to about 1.7 trillion KRW."

Jae-Hyun Bae, Senior Vice President of Kakao, said, "Despite the uncertain global investment environment due to the spread of COVID-19, we successfully attracted a large-scale investment in common shares without early redemption rights (put options) or conversion price adjustments (refixing). This is significant as it proves Kakao M's content competitiveness and growth potential."

Anchor Equity Partners stated, "We highly evaluated Kakao M's infinite growth potential, including its production capabilities spanning all platforms, intellectual property expansion, and a business structure capable of creating synergies."

This large-scale investment signals an expansion of the original content business. In particular, Kakao M plans to plan and develop intellectual property and original stories to produce original video content that crosses mobile, TV, and screen platforms. Kakao M has long focused on enhancing its production capabilities. It has recruited numerous star producers and established a digital content production studio in Sangam-dong, Mapo-gu, Seoul. A Kakao M representative said, "We will present unique content of our own, including digital short-form content optimized for mobile viewing environments."

The global K-pop market development may also gain momentum. Kakao M has been strengthening its existing multi-label system and putting considerable effort into expanding the planning and production of artists and music. It aims to lead the K-pop market by differentiating live entertainment content such as concerts and fan meetings. Kim Sung-soo, CEO of Kakao M, pledged, "We will continue bold investments and build strategic partnerships to strengthen original content competitiveness and establish ourselves as a leading K-content studio."

This content was produced with the assistance of AI translation services.