This study analyzed the M&A strategy of Kakao Entertainment as a case study and analyzed the economic and social effects created by the M&A strategy of a digital platform company. The purpose of this study is to resolve misunderstandings about M&A of digital platform companies by domestic policy makers and their officials and to promote improvement of laws and systems so that digital platform companies can obtain a driving force for innovative management activities. In this study, the economic and social effects of Kakao Entertainment's M&A strategy were quantified and analyzed in various aspects. First, Kakao Entertainment's M&A is a means to gain competitiveness such as securing original content IP. As competition is strengthened due to lower search costs in the digital market and buyers are likely to purchase the content that best suits their taste. Kakao Entertainment's M&A satisfies these needs, giving users of digital content platforms economic effects. Second, Kakao Entertainment's M&A is a part of studio M&A to equip a studio system which has the same meaning as M&A to secure technology. With such a studio system it provides content users with a wider range of high-quality digital content. In addition to benefits, Kakao Entertainment's subsidiaries are also charged with corporate-level operating profit benefits. Third, the M&A of Kakao Entertainment secures the diversity of music, story, and video contents, which increases the consumer surplus of users. Fourth, Kakao Entertainment's M&A strengthens the OSMU effect which leads to economic and social benefits in the process of turning webtoons and web novels in the story sector into video media as well as the transformation of the story sector into video media as well as the character industry and IP commerce. Economic and social benefits are created in the process of connecting to content-related industries. Lastly, Kakao Entertainment's M&A was analyzed to create industrial ripple effects in three aspects: production inducement effect employment inducement effect and import/export effect. Through this study domestic policy makers or officials can resolve the misunderstanding that Kakao Entertainment's M&A is an octopus-style increase in size and digital content platforms competing in the domestic market compete with overseas big-tech companies beyond Korea to gain an advantage. It is hoped that there will be legislative and institutional improvements that will help.