Kakao Entertainment, a subsidiary of Kakao, is reportedly in the process of finding a potential buyer. The news was shared by The Bell, a media outlet, revealing that Kakao had sent letters to major shareholders of Kakao Entertainment indicating their interest in selling their controlling stake in the company.

Initially known as KakaoPage and aiming for an IPO since 2019, Kakao Entertainment has altered its approach due to market challenges and is now focusing on a potential sale. Kakao holds the largest stake in Kakao Entertainment, with 66.03%, while Anchor Equity Partners, a Hong Kong private equity firm, is the second-largest shareholder with 12%.

In early 2023, the Public Investment Fund (PIF) of Saudi Arabia, led by Crown Prince Mohammed bin Salman Al Saud, made headlines by investing during the pre-IPO round. The investment totaled approximately 1.15 trillion KRW (~774.5 million USD), valuing Kakao Entertainment at around 11 trillion KRW (~7.4 billion USD).

Kakao Entertainment boasts various entertainment labels such as SM Entertainment, Starship Entertainment, Highline Entertainment, EDAM Entertainment, High Up Entertainment, and Antenna. Additionally, it acquired Dolphiners Films and Studio K110, an advertising production company.