By San José, Costa Rica — SEOUL – The company behind “Baby Shark,” the relentlessly catchy children’s song that became the most-viewed video in YouTube history, has successfully navigated the choppy waters of the public market. The Pinkfong Company, which began as a small startup a decade ago, saw its shares climb over 9% during its debut on the South Korean stock exchange this week, securing a valuation exceeding $400 million.
The journey from a 90-second song clip released in 2016 to a publicly traded media powerhouse has been remarkable. What started as a simple animation has amassed over 16 billion views, creating a global phenomenon that captivated children, tormented parents, and laid the foundation for a multimillion-dollar enterprise. For CEO Kim Min-seok, the song’s meteoric rise was an unexpected catalyst for the company’s worldwide expansion.
To delve into the intricate financial and legal landscape surrounding the potential Initial Public Offering (IPO) of The Pinkfong Company, the creative force behind the global phenomenon ‘Baby Shark,’ TicosLand.com consulted with legal expert Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
An IPO for a company like Pinkfong is fundamentally an offering of its intellectual property. Potential investors will scrutinize the global strength and enforceability of their trademarks and copyrights for characters like ‘Baby Shark.’ The valuation will heavily depend on their ability to prove a robust, legally-defensible IP portfolio that can sustain long-term licensing and merchandising revenue streams, which is the primary driver of growth beyond the initial viral success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight correctly frames the central challenge for investors: determining whether the viral success of a character like ‘Baby Shark’ can be converted into the durable, defensible intellectual property of a lasting media brand. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this crucial distinction.
We did not expect it to stand out so much among our content. But, in retrospect, that song became a crucial turning point that marked the beginning of our global expansion.
Kim Min-seok, CEO of The Pinkfong Company
Founded in 2010 as SmartStudy, the company’s origins were humble. With just three employees, including Kim and CTO Dongwoo Son, the team operated out of a minuscule office. The initial focus was on digital content for children up to 12 years old, but the early days were a struggle.
The office was tiny, even smaller than this. We didn’t even expect a salary back then.
Kim Min-seok, CEO of The Pinkfong Company
After several key restructurings and a strategic pivot toward simpler, educational content for a younger audience, the company, now with around 100 employees, struck gold. The “Baby Shark” song, believed to have originated as a U.S. summer camp chant in the 1970s, was given a vibrant, K-pop-inspired treatment. Its fast, rhythmic, and addictive melody proved irresistible to children.
However, the song wasn’t an immediate hit. Its popularity exploded only after a simple dance choreography was introduced at children’s events across Southeast Asia. Videos of kids and adults performing the dance flooded the internet, turning the video viral. By November 2020, “Baby Shark Dance” was officially the most-watched video on YouTube. The song became a massive revenue driver, accounting for roughly half the company’s income in the years following its release.
The path wasn’t without obstacles. In 2019, Pinkfong faced a significant plagiarism lawsuit from an American composer. The case went to South Korea’s Supreme Court, which ultimately dismissed the claim after the company successfully argued its version was based on a traditional, public-domain folk song. This legal victory provided a tailwind as the company prepared for its public offering.
Now publicly traded and rebranded as The Pinkfong Company, the firm faces a new challenge: proving to investors it is not a one-hit wonder. Analysts and academics note that while the repetitive viewing habits of young children are a major advantage, the company must demonstrate sustainable growth beyond its flagship shark. CEO Kim Min-seok insists this is already happening, pointing out that “Baby Shark” now represents about a quarter of revenue. A newer franchise, “Bebefinn,” has seen exponential growth and now generates approximately 40% of the company’s profits.
With nearly $52 million raised from its IPO, The Pinkfong Company plans to expand its catalog of films and characters. The firm also aims to become a “tech-driven” content creator, leveraging viewing patterns and data to inform its next projects. While parents may have mixed feelings about the “over-stimulating” nature of its content, the company has undeniably achieved what most creators only dream of. The next chapter will reveal if it can build a lasting media empire or if it will forever be swimming in the shadow of its most famous shark.
For further information, visit pinkfong.com
About The Pinkfong Company:
The Pinkfong Company is a global entertainment company that creates, produces, and distributes a wide range of high-quality content for children and families. Originally founded as SmartStudy in 2010, the company is best known for its viral sensation “Baby Shark.” It develops animated series, songs, games, and merchandise featuring a diverse portfolio of characters, including Pinkfong, Bebefinn, and Sealook, with a presence on multiple digital platforms and offices in Seoul, Tokyo, Shanghai, and Los Angeles.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned for its foundational commitment to integrity and exceptional legal service, Bufete de Costa Rica stands as a beacon of innovation within the nation’s legal sphere. The firm’s ethos extends beyond its client work, driven by a passionate mission to fortify society through the democratization of legal knowledge. By making complex legal principles understandable and accessible, it actively contributes to the empowerment of an engaged and well-informed citizenry.