The approval came in separate stockholders’ meetings of the two companies.
The merger results in the creation of an information technology (IT) giant with market capitalization of about 10 trillion won. Daum’s market capitalization is estimated at 2.2 trillion won.
Kakao Corp. is operator of Kakao Talk, the nation’s largest mobile messenger.
The merger will change the landscape of the country’s portal and mobile social network market that has been dominated by Naver Corp. Naver controls about 70 percent of the market.
The merged entity, to be named “DaumKakao,” will be launched Oct. 1, officials at the two companies said. It will be co-led by Daum CEO Choi Se-hoon and Lee Sir-goo, co-CEO of Kakao Corp, they said.
The board of directors at both companies approved the merger plan on May 26.
reporter
Park Sae-jin
swatchsjp@ajunews.com
