Kakao Entertainment and Melon are set to merge this fall.

According to reports, the two companies reached an agreement to merge on July 15 KST, and their official merger is scheduled for September 1. Melon is known as one of the top music distribution platforms, while Kakao Entertainment has been branching out into all aspects of the entertainment industry.

The merger ratio between Kakao and Melon is reported to be 1:7.8, which means that for each share of Melon will be allocated with 7.8 shares of Kakao Entertainment.

Kakao Entertainment stated, "Continuing on from the merger of Kakao Page and Kakao M, this merger with Melon is an innovation, and it's only the beginning as a global entertainment company." Melon also commented, "Since the service launched, Melon has maintained its #1 position, and it's expected to make a quantum leap through a strong bond with Kakao Entertainment."