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AI startup Upstage signs deal with Kakao to acquire portal Daum

Published: 29 Jan. 2026, 18:36 Updated: 29 Jan. 2026, 18:45

The logo for internet portal Daum is seen in this file photo [KAKAO]

AI startup Upstage on Thursday signed a memorandum of understanding (MOU) with Kakao to acquire internet portal Daum through a share swap with Daum’s operator AXZ.

Upstage and Kakao said their boards approved the agreement at separate meetings earlier in the day, paving the way for a stock-for-stock transaction. Under the deal, Kakao will transfer its AXZ shares to Upstage in exchange for a stake in Upstage. AXZ is currently a wholly owned subsidiary of Kakao.

The companies did not disclose the size or valuation of the stakes or a timeline for completion.

Kakao merged with Daum, the country's second-largest internet portal, in 2014. Daum completed administrative procedures to formally separate from Kakao as of Dec. 1, 2025, after which AXZ became the legal entity providing the portal’s services.

Kakao is the operator of Korea's most used messenger app, KakaoTalk, and also offers other services, including taxi-hailing and online banking.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JUNG SI-NAE [[email protected]]