Korean Times: PIF and Singapore’s sovereign wealth fund GIC to invest $785 mln in Kakao Entertainment

Kakao Entertainment is facing an imminent investment worth 1 trillion won ($785 million) from major global investors in its pre-IPO round, The Korean Times reported.

According to the investment banking industry Monday, the entertainment company is soon expected to sign a stock purchase agreement (SPA) with Singapore’s sovereign wealth fund GIC and Saudi Arabia’s Public Investment Fund (PIF) this month. The PIF has shown interest in Korean content and game businesses, as it acquired stakes in Nexon and NCSOFT last year.

The entertainment company’s corporate value for this round of investment is valued at around 10 trillion won. With the new capital, the company plans to accelerate its further growth.

The company had pursued aggressive M&As in a wide range of areas during the past few years, enlarging its size. Its businesses include K-pop management, intellectual property with webtoon and webnovel platforms and music streaming service. The firm acquired U.S.-based Tapas Media and Radish Media in 2021. The same year, it acquired Melon Company, which operates Korea’s representative music streaming service. K-pop artists managed by the firm include IU, IVE, Monsta X and The Boyz.

Kakao Entertainment previously aimed to go public during the second half of last year, but it had to delay the IPO plan amid market uncertainties. Instead, it decided to advance into further investment rounds to facilitate stable growth.

Kakao holds a 73.6 percent stake in Kakao Entertainment, while Anchor Equity Partners is the second-largest shareholder of the firm. GIC invested in the entertainment firm in 2016 as a limited partner of Anchor Equity Partners.