Zoo Digital acquires remaining 49pc of Korea operation

Localisation and media service specialist Zoo Digital announced the acquisition of the remaining 49% stake in Zoo Korea on Wednesday, having acquired a majority 51% equity in March last year.

The AIM-traded firm said Zoo Korea had seen significant success since the initial acquisition, establishing itself as a reputable servicing hub for large entertainment names.

It said the acquisition had been beneficial in addressing the growing demand for Korean content and distribution of non-Korean titles in the country, with Zoo Korea providing secure dubbing, subtitling, quality control and media services.

Recently, two global streaming services had partnered with Zoo Korea, with new opportunities said to be on the horizon.

To support growing demand, Zoo Korea would need additional investment in people and infrastructure.

In 2022, Zoo Korea generated $1.2m in revenue and profits of $0.1m.

The Zoo board said it estimated that Zoo Korea would generate significant incremental revenue for the group in future years, through its own operations in Korea as well as services provided to Zoo in the US and the UK.

“We have been thrilled by the success of Zoo Korea since its inception 12 months ago,” said the group’s chief executive officer Stuart Green.

“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.”

Under the terms of the transaction, Zoo Digital would issue 550,000 ordinary shares to the existing shareholders of Zoo Korea, and make a one-off payment of $0.2m for their 49% stake.

The board said it believed that it was commercially advantageous for Zoo Korea to become a wholly-owned subsidiary of the group.

“The popularity of Korean-language film and television has transformed South Korea into one of the most exciting markets globally for content production,” said Zoo Korea’s managing director Jonghyun Oh.

“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.”

At 1312 BST, shares in Zoo Digital Group were down 0.08% at 197.34p.

Reporting by Josh White for Sharecast.com.