Radish Acquired by Kakao Entertainment for $440M

Kakao Entertainment to Acquire Serialized Fiction App Radish for $440 Million

Radish, a popular serialized fiction application, is set to be acquired by Kakao Entertainment in a deal valued at $440 million. Kakao Entertainment is a subsidiary of Kakao, a major South Korean internet company well-known for its messaging platform.

Leadership Continuity and Global Expansion

Following the acquisition, Seungyoon Lee, the founder of Radish, will continue to serve as the app’s chief executive officer. He will also assume the role of Kakao Entertainment’s global strategy officer, spearheading the company’s expansion initiatives within international markets.

This acquisition is strategically aimed at bolstering Kakao Entertainment’s presence in North America and other English-speaking regions, specifically within the webtoons and web novel sectors.

Maintaining Brand Autonomy

Radish will operate as an independent brand, retaining its existing management structure and operational autonomy. This ensures continuity for its user base and ongoing development of its platform.

Industry Trend: South Korean Investment in Digital Storytelling

This news follows a similar move by another South Korean internet leader, Naver, which recently finalized its acquisition of Wattpad. Both deals highlight a growing interest in securing intellectual property within the digital storytelling landscape.

Radish's Growth and Business Model

Established in 2015, Radish initially centered on user-created content. However, the introduction of Radish Originals in 2018 proved pivotal to its growth.

Revenue experienced a tenfold increase in 2020 compared to the previous year, largely attributed to the success of Radish Originals.

Micropayment System and Revenue Streams

Radish employs a micropayment system, allowing users to access a limited number of episodes for free. Subsequent episodes are unlocked through payments ranging from 20 to 30 cents, or by waiting for a free unlock after one hour.

Currently, approximately 90% of Radish’s revenue is generated through its Radish Originals content.

Synergies and Content Adaptation

The acquisition will facilitate the adaptation of Radish Originals’ intellectual property into various formats, including webtoons, videos, and other media, thereby broadening their audience reach.

Kakao Entertainment has a proven track record of adapting web novels into popular webtoons and other media, with successful titles such as “What’s Wrong with Secretary Kim?,” “A Business Proposal,” and “Solo Leveling.”

Collaboration and Future Plans

Seungyoon Lee revealed to TechCrunch that Radish began exclusively distributing select popular series from Kakao Entertainment, like “What’s Wrong with Secretary Kim?,” last month.

Plans are underway to introduce more content from Kakao Entertainment’s portfolio, and explore opportunities for creating localized novel adaptations of Kakao’s existing popular stories.

Kakao Entertainment's Vision

Jinsoo Lee, CEO of Kakao Entertainment, stated in a press release, “Radish has firmly established itself as a leading web novel platform and yet we see even greater growth potential.”

He further expressed enthusiasm about the combined strengths of Kakao’s IP expertise and Radish’s established position in the North American market.

Approval and Investor Support

The acquisition has received approval from Radish’s board of directors, including representation from SoftBank Ventures Asia, its largest investor, and a majority of its shareholders.

Additional investors in Radish include Lowercase Capital, K50 Ventures, Nicolas Bergruen, Charlie Songhurst, Duncan Clark, and Amy Tan, the acclaimed author.