Netease Tech, 5/17/12
Tencent (0700.HK) has disclosed that on April 15 it acquired 13.84% of South Korean mobile application developer Kakao for RMB 403 mln in cash, purchasing 3.6 mln shares of preferred stock in Kakao.
Kakao's KakaoTalk mobile app is similar to Tencent's mobile messaging app Weixin. KakaoTalk has experienced explosive growth in user numbers, but has yet to find an appropriate revenue model. Kakao's 2011 loss widened to KRW 15.2 bln (approx. RMB 76 mln).