ZOO Digital Group announces acquisition of the remaining 49 per cent of ZOO Korea
LONDON, UK: ZOO Digital Group (AIM: ZOO), a leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry, announced the acquisition of the remaining 49 per cent of ZOO Korea.
Since the Company acquired 51 per cent. of the equity in March 2022, ZOO Korea has successfully expanded to deliver an in-territory servicing hub for the most prestigious names in entertainment.
The venture has helped to address the growing global demand for Korean content and distribution of non-Korean titles in the country with premium and secure provision of dubbing, subtitling, quality control and media services.
In recent months, two global streaming services have worked with ZOO Korea and further significant new opportunities are in the pipeline. Due to the increased volumes of work, additional investment in people and infrastructure is required to support demand and capture the growing in-territory market for ZOO Korea’s services.
In FY22, ZOO Korea generated $1.2 million revenue and $0.1 million profit and the Board believes that it is commercially advantageous for ZOO Korea to become a wholly-owned subsidiary of the Group. The Board estimates that $4.5 million of incremental revenues were recognised across the Group in FY23 as a result of ZOO Korea and that it will generate significant incremental revenue for the Group in future years through its own operations in Korea as well as services provided assisting ZOO in the US and UK.
Under the terms of the transaction, the Company will issue 550,000 ordinary shares in ZOO Digital Group plc to the exiting shareholders of ZOO Korea and make a one-off payment of $200,000 in consideration for their 49 per cent stake.
Stuart Green, CEO of ZOO Digital, commented: “We have been thrilled by the success of ZOO Korea since its inception 12 months ago. Our teams have built a productive and efficient working relationship, revenues have exceeded initial expectations and customer acceptance has been very high. This additional investment will consolidate the full benefit of ZOO Korea’s future growth to the Group and support our long-term ambitions in the region.”
Jonghyun Oh, Managing Director, ZOO Korea, added: “The popularity of Korean-language film and TV has transformed South Korea into one of the most exciting markets globally for content production. We continue to see major international investment in original Korean programming, underpinned by both new and returning series, which is driving demand for our localisation and media services.”
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