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SK Telecom's Sapeon Korea Inc. and Rebellions Inc. to Merge and Strengthen Global AI Chip Market Presence
In a significant development within the AI chip industry, SK Telecom Co.’s AI chip startup, Sapeon Korea Inc., has agreed to merge with its competitor, Rebellions Inc. This strategic consolidation aims to bolster their global stance and leverage the surging interest in AI services.
The decision, announced on Wednesday, highlights the aspiration of both companies to emerge as a leading AI chip powerhouse in South Korea. The joint statement indicates that they will commence due diligence, with the objective of finalizing discussions regarding the merger ratio and other pertinent details by the third quarter.
Valuation and Ownership Details
Rebellions, which is backed by KT Corp., has recently been valued at 880 billion won (approximately $640 million). On the other hand, Sapeon is estimated to be worth 500 billion won and is predominantly owned by SK Telecom, SK Hynix Inc., and SK Square Co., holding an 84.5% stake collectively.
Impact on Initial Public Offering (IPO) Plans
Despite today's merger announcement, Rebellions' original plan to prepare for an initial public offering by the second half of 2025 remains intact, although the timeline might be adjusted. Chief Financial Officer Shin Sungkyue reiterated that the merger won't alter their IPO intentions significantly.
As the two companies combine their expertise and resources, this merger is poised to enhance their competitive edge within the increasingly demanding AI chip market.
