Id no: d210

Name: Khan Ahmad Ali

Kakao M Entertainment Company

A. Initial cost analysis

 Kakao M. Entertainment Company established in 1978 by Min Yeong-bin.

 It has the total net income of KRW 50.6 billion.

 Revenue cost of this company is US$ 323.2 million.

 The grand total operating income of kakao M. Is KRW 65.9 billion[ CITATION Yua18 \l

4105 ].

 Total amount of assets this company has is KRW 303.8 billion.

 It is the second-largest company in terms of sales as it has 25.4% rates of sales.

 93.9% of sales have been earned from online music sales.

B. Investment Analysis

 Kakao M. raised 210 billion won from international investors.

 The company has also stated that it has decided to increase its investment party’s

allocation paid-in capital worth 68.8 billion won which is approximately $57.1 million.

 The issues new shares of 568,711 and the new per-share price is 122,695 won.

C. Planning and management roles

 Kakao M. continuously presents contents of high quality through the system that support

comprehensively production of content, artist promotion, marketing along with perfect

planning and management.

 Kakao M. is managing three companies under them.

 It also serves its artist excavation and management services very supportively.
  Kakao M. has a supportive management system that is the reason they have been a

second-largest company of entertainment on the basis of sales.

D. Business analysis

 Kakao M is managing three companies and their concept is called the "company in

company" (CIC) and also planning to set up one more in the future.

 One of them is Melon Company which Kakao M's online music service company, and it

has 59% of users all among Korea.

 The other is Music content company it includes the music content brand called 1theK,

and it distributes almost 300 titles per year collaborating with private agencies [ CITATION

Jih19 \l 4105 ].

 And the third is Video content company which has also a big fame in the industry of

entertainment in Korea.

 There are more than 15 companies which are the subsidiaries of Kakao M.

 Also Kakao M and its parent company established the CSR venture Kakao Impact

Foundation in April 2018.

 One of their labels also sell Cd's of some other entertainment companies through its

1theK branch.

E. Risk analysis

 Kakao M Entertainment Company from Korea has become one of the most characteristic

and expressive entertainment companies in today's Asian entertainment industry, a

prototype of cross cutting and modified improvement[ CITATION Dha19 \l 4105 ].

  In addition, Kakao M has enormous investment in every stage of cultural item creation to

continuously enhance the quality of content meanwhile using recent digital technology to

bolster their competitiveness in Asia and the global market.

 That is the reason they have a big responsibility upon them to create quality content and

treat the artists generously because their content has been know attached to the feelings of

whole world.

References

Atika, D. (2019). Kakao M to Increase Capital of Paid-in Third-Party. Retrieved from gotrading asia:
https://www.gotradingasia.com/business/5407-kakao-m-to-increase-capital-of-paid-in-third-
party/amp

Ji-hyoung, S. (2019). Kakao M carries on M&A push with $23m deal. Retrieved from The korea herald:
http://m.koreaherald.com/amp/view.php?ud=20191225000113

Liu, Y. (2018). Proceedings of the 2018 International Conference on Economics, Business, Management
and Corporate Social Responsibility. Advances in Economics, Business and Management
Research.