Tencent backs Korean mobile messager Kakao

The Chinese internet firm purchased 3.6 million shares, or a 13.8% stake, at KRW20,000 per share, while Wemade took 1 million shares, or 3.8%, according to South Korea newspaper The Chosun Ilbo.

Kakoo Talk only recorded revenues of KRW1.8 billion in 2011, but the transaction values the company at more than KRW520 billion. It has a local and overseas user base of 44 million.

"The investment and strategic partnerships will help Kakao to enter global markets, as well as supporting the development of games business," said Kakao.

Tencent, which was set up in 1998, has been actively involved in corporate venturing since last year. Other Chinese internet firms, including Baidu and Alibaba, are also entering the corporate venture capital space, with a view to identifying investments that bring strategic value.

In January 2011, Tencent rolled out its Tencent Collaboration Fund, which targets social and mobile gaming, e-commerce and new media. It is equipped with RMB5 billion ($792 million) from Tencent's balance sheet and outside investors are expected to match this sum.

Alibaba Group has as well set up a RMB300 million fund under its online auction site Taobao and created AliVenture, a corporate VC arm with a team of 16-20 investment professionals. Baidu, though withourt a separate investment arm, is also actively deploying its capital into online start-ups from the company's balance sheet.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Investments
• North Asia
• South Korea
• Tencent
• Venture
• Alibaba Group
• Baidu