Kakao has decided to sell most of its subsidiaries, excluding its core assets. This decision comes amid increasing legal risks, including company founder Kim Beom Su facing prosecution for manipulating SM's stock price when Kakao was in a bid to purchase the company.
According to the IT and investment banking industries on July 15, Kakao decided to sell most of its entertainment subsidiaries, including Kakao Entertainment and SM Entertainment, and is currently seeking buyers.
A Kakao-related representative stated, “Except for assets identified as future core businesses, we have decided to sell everything,” and added, “SM Entertainment, identified as a cause of various prosecution investigations, has been internally decided to be sold.”
Korean netizens are wondering who will buy SM as they commented:
"Right now, SM is at its highest profitability and peak value, making it the perfect time to sell it at a high price. It seems logical that SM would be the first priority for sale since selling requires a good product."
"Lee Soo Man?"
"These days, in the domestic market, even large companies that were previously interested in or involved in the entertainment business are withdrawing. So if an acquisition does happen, it's more likely to be from overseas."
"Maybe an Arab company will buy them."
"In the end... there's no other choice."
"Again, I wonder where it's going to end up."
"Hopefully a Korean company."
"Could it really be bought by someone from the Middle East?"
"If Lee Soo Man makes a comeback, it would be truly hilarious."
"Maybe a company from China?
"HYBE could just buy shares to become the majority owner."
"Oh, could it be bought by someone from the Middle East or China?"
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