"We discussed changes to the shareholder structure, but have discontinued the review"
"We will continue to consider strategies to achieve results"
Kakao has officially denied the rumors regarding the sale of its subsidiary, Kakao Entertainment. This is the first time that the parent company, rather than Kakao Entertainment's own management, has issued an official denial.
On August 7, Kakao released a clarification announcement regarding rumors and media reports, stating, "We discussed changes to the shareholder structure of Kakao Entertainment, but have decided to discontinue the review of this matter." The company added, "We will continue to review various strategic measures to enhance Kakao Entertainment's global performance and strengthen its business competitiveness."
Employees are entering and exiting the Kakao headquarters in Pangyo, Seongnam, Gyeonggi Province. Photo by Huh Younghan
Rumors about the sale of Kakao Entertainment first emerged in April. Media reports claimed that Kakao had sent letters to shareholders of Kakao Entertainment, including Anchor Equity Partners and the Saudi Public Investment Fund (PIF), expressing its intention to sell its management rights.
In response, the management of Kakao Entertainment repeatedly denied the rumors, explaining that discussions about replacing financial investors and changes in shareholding had been misrepresented. However, this is the first time that an official denial has been issued by the parent company.
Kakao Entertainment operates businesses such as story content, including web novels and webtoons, as well as music and video content.
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