Kakao Entertainment, a subsidiary under Kakao, is reportedly looking for a buyer.

According to media outlet The Bell, Kakao recently sent letters to major shareholders of Kakao Entertainment to express its intention to sell. The letters stated that Kakao is seeking to sell its controlling stake in Kakao Entertainment.

Kakao Entertainment has been preparing for an IPO since 2019, back when it operated as KakaoPage. However, due to unfavorable market conditions, the company has shifted its strategy towards a sale.

Kakao is currently the largest shareholder of Kakao Entertainment, holding a 66.03% stake in the company. The second-largest shareholder is Anchor Equity Partners, a Hong Kong-based private equity firm, which owns 12%.

In early 2023, the Public Investment Fund (PIF) of Saudi Arabia, led by Crown Prince Mohammed bin Salman Al Saud, drew attention by participating as an investor. At the time, a total of 1.15 trillion KRW (~774.5 million USD) was invested during the pre-IPO round, and Kakao Entertainment was valued at approximately 11 trillion KRW (~7.4 billion USD).

Kakao Entertainment houses several major entertainment labels, including SM Entertainment, Starship Entertainment, Highline Entertainment, EDAM Entertainment, High Up Entertainment, and Antenna. It also acquired the advertising production company Dolphiners Films and Studio K110.

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