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| ▲ This corporate logo of Kakao Entertainment is provided by the firm. (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL, April 11 (Yonhap) -- Kakao Entertainment's leadership has dismissed recent speculation about a potential sale of the company.
According to industry sources on Friday co-CEOs Kwon Ki-soo and Jang Yoon-jung addressed the matter through an internal bulletin the day before, stating, “Kakao has been in discussions regarding the replacement of financial investors and changes in equity structure. The rumors about a sale of Kakao Entertainment stemmed from a misinterpretation of this process.”
The message appears to be an attempt to calm growing concerns among employees following abrupt media reports suggesting a possible sale.
While Kakao Entertainment has held monthly town hall meetings called “Entalk” since the new management team took over last year to promote internal communication, no mention of the issue was made during this month’s session. The absence of transparency until media coverage reportedly fueled dissatisfaction among staff.
Crew Union, the labor union representing employees across the Kakao community, has requested an official clarification from Kakao, the parent company of Kakao Entertainment, regarding the veracity of the sale rumors. As of yet, no response has been provided.
Kakao Entertainment is a core Kakao subsidiary involved in content businesses including webtoons, web novels, music, and video production. However, the company has faced headwinds amid a downturn in the content market, with its story and media segments reporting year-on-year revenue declines of 6% and 10%, respectively, in 2023.
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