- Kakao Entertainment is acquiring Radish in a transaction valued at $440 million.
- The acquisition will help Kakao Entertainment expand its Webton and Web novel business.
- Investors include Lowercase Capital, K50 Ventures, Nicolas Bergruen, Charlie Songhurst, Duncan Clark, and Amy Tan.
- Kakao Entertainment will acquire Radish’s intellectual property:
Radish is a mobile fiction platform for serialized storytelling. Readers can access thousands of serials across genres and connect directly with their favorite storytellers in live community chat rooms. Authors can publish their own original stories, revive backlist titles with a young, mobile readership, and pre-release upcoming books to build advanced buzz—the opportunities are endless.
Kakao Entertainment is acquiring Radish in a transaction valued at $440 million:
Kakao Entertainment is acquiring Radish in a transaction valued at $440 million. It is owned by South Korean internet giant Kakao, whose services include its naming messaging platform. Radish founder Seguen Lee will serve as its chief executive officer. He will also be the global strategy officer of Kakao Entertainment to lead its growth in international markets.
The company claims millions of users in North America. The acquisition will help Kakao Entertainment expand its Webton and Web novel business and into other English-speaking markets. Radish will maintain management autonomy and continue operating as its own brand.
Radish originally focused on user-generated content. But, now the core of its business is either the original serial or a serial fiction series designed specifically for the app. The company said that the launch of Radish Originals in 2018 helped accelerate its growth, with revenue increasing more than 10 times in 2020 compared to the previous year.
Kakao will acquire Radish’s intellectual property:
Radish monetizes content through its micro apportionment system, which allows users to read multiple free episodes before paying around 20 to 30 cents to unlock new episodes (users have access to unlock episodes for free. There is also an option to wait for one hour). About 90% of its revenue now comes from radish origin.
Radish’s board of directors approved the acquisition. It includes a representative of SoftBank Ventures Asia, its largest investor, and a majority of its shareholders. Other supporters include Lowercase Capital, K50 Ventures, Nicholas Burguruen, Charlie Songhurst, Duncan Clarke, and Amy Tan, the best-selling authors.