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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Kakao has officially denied recent speculation regarding the potential sale of its subsidiary, Kakao Entertainment. This marks the first time the parent company, rather than Kakao Entertainment’s management, has issued a formal denial.
In a regulatory filing on August 7 addressing market rumors and media reports, Kakao stated, “We had considered a possible change in the shareholder structure of Kakao Entertainment, but have decided to discontinue the review.” The company added, “We will continue to explore various strategic options to strengthen Kakao Entertainment’s global performance and business competitiveness.”
Rumors of a potential sale first emerged in April, when reports claimed that Kakao had sent a letter to shareholders of Kakao Entertainment — including Anchor Equity Partners and Saudi Arabia’s Public Investment Fund (PIF) — expressing its intent to sell management control.
At the time, Kakao Entertainment’s management denied the reports, stating that discussions had been limited to possible changes involving financial investors and were misinterpreted as a sale. However, this latest clarification marks the first official statement on the matter issued by Kakao at the corporate level.
Kakao Entertainment operates a broad portfolio of businesses, including story-based content such as webtoons and web novels, as well as music and video production.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
