Kakao has officially denied rumours that it is looking to sell its entertainment arm, Kakao Entertainment, following months of market speculation.
In a regulatory filing on Thursday, the South Korean internet giant clarified that while it had reviewed potential changes to Kakao Entertainment’s shareholder structure, the review has since been halted.
“We reviewed potential adjustments to Kakao Entertainment’s shareholder structure but have decided to discontinue the review,” the company said. “Moving forward, we will continue to explore various strategic options aimed at strengthening Kakao Entertainment’s global footprint and enhancing its overall business competitiveness.”
This marks Kakao’s first formal statement addressing widespread speculation that it had informed shareholders — including Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) — of its intention to sell management control of Kakao Entertainment.
Kakao Entertainment, a subsidiary of Kakao, operates across multiple segments, including web content production, music distribution, and talent management. The company plays a significant role in Kakao’s efforts to expand into global entertainment markets, and Kakao’s latest statement signals its commitment to retaining and growing the business rather than divesting it.
