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Kakao wants to sell content arm Kakao Entertainment: Report

Published: 08 Apr. 2025, 18:46

YOON SO-YEON
[email protected]

Kakao Entertainment logo [KAKAO ENTERTAINMENT]

Kakao is seeking to sell its content company Kakao Entertainment, according to a report by local news outlet The Bell.

According to a report by The Bell on Tuesday, Kakao recently sent letters to shareholders that it is seeking to sell the shares of Kakao Entertainment.

Kakao Entertainment is a content and entertainment company 66 percent owned by Kakao. The company owns web content services Kakao Webtoon and Kakao Page, as well as Tapas and Radish. Kakao Entertainment also owns major K-pop agencies such as Starship Entertainment and EDAM Entertainment — the former home to girl group IVE and the latter to singer IU.

Kakao Entertainment is also a 20 percent shareholder of SM Entertainment, the oldest K-pop agency in Korea.

The company aimed to go public starting in 2019 when Korean web content, especially webtoons and K-pop, was seeing a surge in popularity among global audiences. Kakao Entertainment raised major investments from the Saudi Public Investment Fund and Singapore's GIC.

After the content market died down post-pandemic, the firm has been struggling to go public and instead seems to have pivoted toward a possible merger, according to The Bell report.

Kakao Entertainment sold its subsidiary Next Level Studio, a web content production company, in February. It also sold off its shares in K-pop agency IST Entertainment and 3Y Corporation, home to rock band QWER.

BY YOON SO-YEON [[email protected]]