SK Networks, Bow Capital join forces on future AI investments

SK Networks President Choi Sung-hwan, left, and Vivek Ranadive, Managing Director of Bow Capital, pose after signing an agreement on Tuesday in Seoul. [SK NETWORKS]

SK Networks joined hands with Bow Capital Management, a California-based venture capital firm, to work together on future investments, including mergers and acquisitions, on AI through a memorandum of understanding (MOU) announced Wednesday.

Under the agreement, the U.S. investment firm will acquire a portion of SK Networks’ Treasury shares when the Korean company forms a consortium for large-scale AI investment, SK Networks said without detailing the target of the investment.

SK Networks is a rental business and investment unit which is 41 percent owned by SK. Bow Capital is run by Vivek Ranadive, best known as the owner of the NBA's Sacramento Kings.

The two parties will also closely cooperate in identifying investment targets.

“In pursuit of strategic collaboration, SK Networks envisions leveraging this MOU to actively involve external investors,” SK Networks said in a statement. “The plan involves divesting shares to influential partners upon confirming future joint investment targets,” it said.

Managing Director Ranadive expressed expectations. “I am excited to partner with SK Networks in launching the SK Networks Renaissance Project, and in finding a transformative acquisition,” he said in the statement. “Our joint efforts will contribute to the successful reinvention of SK Networks as a global technology company."

SK Networks hopes that the cooperation could generate positive effects on its existing business units.

“Our emphasis will be on cultivating innovative business models applicable to our diverse enterprises, including information and communications business, SK Magic, En-core and the recently revitalized Walkerhill Hotel,” said an official at SK Networks in the statement.

“We aim to achieve this by actively acquiring technologies relevant to contemporary needs, and fostering collaborations with academic and industry partners, such as the UC system."

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]