] Yello Mobile, a local mobile platform operator, on Aug. 30 said it is turning into an operating holding company, streamlining its affiliates before the planned initial public offerings of Yello O2O and Future Stream Network
The company said in a regulatory filing that it will merge with Yello Shopping Media, a mobile shopping portal operator, in which the company owns 100 percent stake, within the year.
Established in 2013, Yello Mobile has been criticized for its complicated shareholding structure among affiliates that reduces profitability overall. After the planned merger, the number of affiliates is expected to be reduced to some 20.
“Through the structural overhaul, we will strengthen transparency and stability of the holding company, while elevating business synergies among affiliates,” the company said in a statement. “We also plan to start preparations for the upcoming IPOs.”
The company plans to debut its mobile advertisement platform operator Future Stream Network in October on the tech-savvy KOSDAQ. Its offline-to-online business affiliate Yello O2O is also preparing for an IPO in the coming months.
By Lee Ji-yoon (email@example.com