Kakao Amusement, owned by South Korean tech big Kakao, will shut down the Korean branch of Tapas Enjoyment, the U.S.-headquartered storytelling system, upcoming month.
Kakao Amusement advised TechCrunch that it options to shut the Korean business office as component of a restructuring hard work to zero in on the company’s North American and other world wide units. The closure will also include things like layoffs impacting the Korean-primarily based team.
“Tapas Entertainment is streamlining operations to reply flexibly [and quickly] in the North American market place in response to the world-wide financial downturn,” a Kakao Entertainment spokesperson advised TechCrunch. “Tapas Korea has been in the services of operation and advertising of Tapas Entertainment that is headquartered in the U.S.”
The company did not supply the full number of personnel at Tapas Entertainment and how lots of workforce at Tapas Korea will be laid off. According to regional media stores, Tapas Korea has about 20 workers.
Kakao Leisure has a few main models: an artist company (Kakao Enjoyment), a storytelling device (Tapas Leisure) and a Spotify-like music small business (Melon).
Kakao Leisure will get in excess of the duties formerly dealt with by Tapas Korea, a conclusion created simply because the larger sized organization has far more working experience and abilities, the spokesperson defined. They extra that this is not similar to Silicon Valley Bank’s failure very last week regardless of the simple fact that Tapas Enjoyment is a depositor of SVB. The corporation is currently getting ready steps to deal with the fallout of the SVB collapse, like diversifying assets into unique banks and accounts. Owing to the U.S. governing administration and regulators’ quick steps, which will assure all deposits, the spokesperson mentioned there need to not be any impact on the company.
The spokesperson also said the restructuring is not associated to an ongoing acquisition deal talks Kakao is holding pertaining to K-pop agency SM Leisure.
The news of the Korean branch shutdown will come just about two months immediately after Kakao Entertainment’s substantial fundraising of about $966 million (1.2 trillion received) from Saudi Arabia’s General public Expenditure Fund and Singapore’s sovereign fund GIC previously this yr. The organization claimed it would use the financing for even more international growth and acquisitions.
In May well 2022, Kakao Enjoyment merged two storytelling platforms, Tapas and Radish Media, to accelerate Kakao Entertainment’s progress in North The us. Following the merger, it rebranded the mixed device to Tapas Entertainment.