Kakao Entertainment acquires K-pop label High Up Entertainment

Kakao Entertainment acquires K-pop label High Up Entertainment

In a bid to expand its business globally, South Korea based Kakao Entertainment has reportedly accomplished a series of mergers and acquisitions overseas as well as domestically.

Sources have confirmed that the company has concluded the transfer of its digital content production and supplier Studio Orange and Studio Phoenix from Thailand on March 12. Its purpose is to conduct content and commerce business in Thailand.

Kakao stated that Studio Phoenix and Studio Orange were started as the subdivisions of Kakao Entertainment Asia which was founded on February 25 for expanding its entertainment business. It also added that by buying the studio the firm intends to debut in Southeast Asia's music, video and commerce industry.

Apparently, this investment comes as a part of Kakao’s roadmap to emerge as global content provider. The company had even unveiled its plan to become a global leader in entertainment industry at the time of its launch in March. It had also confirmed that it would make new content and intellectual property investments.

The industry reportedly expects Kakao Entertainment to introduce a fully functional content and commerce business to the Southeast Asian market. In fact, the company rolled out the Kakao Webtoon service in Thailand on June 7 and anticipated to contest with its competitor Naver, which first dominated the Southeast Asian markets.

Kakao also acquired High Up Entertainment in May, which is home to the famous girl group STAYC in Korea. Under this acquisition, the company reportedly secured 40% shares in High Up Entertainment, making it the biggest shareholder.

The company apparently aims to create new synergies in the video content business like movies and dramas as well as Kakao TV's original dramas and entertainment, which it is augmenting by securing shares in Antenna Entertainment.

An official from Kakao Entertainment stated that the company has collaborated with High Up Entertainment and other firms under its affiliate label. The purpose of this is to increase the competitiveness of music business and to create new synergy with the artists, the official added.