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Kakao officially acquires Daum Communications

October 1, 2014
(Kakao officially acquired Daum on Oct. 1)

(Kakao officially acquired Daum on Oct. 1)

By The Korea Times Los Angeles staff

On Wednesday morning, Kakao officially acquired Daum Communications Corp., a fellow South Korean tech giant that specializes as a web search tool.

Known for its popular mobile messenger app that is already installed on 93% of South Korean mobile phones, Kakao now has a market capitalization of $10 billion after the merger based on the most recent financial reports.

Despite the public’s excitement displayed in soaring Daum Kakao stock prices, investors are unsure of the company’s specific strategy to expand outside of an already-saturated South Korean market.

“We don’t know yet, which service we’ll be launching first together,” says Co-Chief Executive Lee Sir-goo in a Seoul news conference. “We’re currently trying various options.”

Despite the vague statements, the two CEOs exuded optimism in the merger. At the moment, investors will have to wait before their concerns about the company’s future are addressed.