What you need to know about the Indias most hated company, Sony
Sony Corp has agreed to buy Japanese internet giant KakaoTalk for $5.4bn, the biggest deal in the Japanese tech industry.
The Japanese firm is one of the world’s largest online video providers and had been in talks to buy Kakao Talk since 2014.
But the deal could be blocked by the country’s cabinet, which is also set to approve the sale.
Sony said in a statement that the acquisition would allow the company to become a more sustainable business, strengthen the position of its brand and enhance its strategic growth.
“This acquisition will give Sony a strong presence in the global digital media market, with an ambitious goal of being the leading platform for the online video industry by 2020,” the company said.
KakaoTalk, which was founded in 2003, has become a pioneer in the emerging Japanese internet video market.
It launched a video streaming service in 2016 and recently started a new service to stream anime and anime-themed content.
The new deal comes as Sony continues to struggle to gain traction in the booming global video streaming market, where companies like Netflix, Hulu and Amazon are taking advantage of a growing appetite for entertainment content.
But it also comes as the Japanese government seeks to revive the economy amid an economic slowdown.
The government has pledged to boost investment and boost Japan’s growth rate to 5.6 percent in 2020 from 3.8 percent this year.
The deal is the biggest acquisition by a Japanese firm for Kakao, which has a market value of $7.2bn.
Konami, a Tokyo-based maker of games and other entertainment software, said it had bought the online platform for $2.7bn in April 2019.