Seoul: Internet giant Kakao Corp. on Thursday denied rumors that it plans to sell its subsidiary, Kakao Entertainment Corp. "We reviewed potential changes to Kakao Entertainment's shareholder structure but have decided to discontinue the review," the company said in a regulatory filing. "We will continue exploring various strategic options to boost Kakao Entertainment's global presence and enhance its business competitiveness," it added.
According to Yonhap News Agency, this statement marks Kakao's first official response to months of speculations 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 is a key subsidiary of Kakao, engaged in web content, music, and talent management businesses.