SEOUL, October 02 (AJP) - Kakao Games has sold its golf subsidiary, Kakao VX, in a deal that will provide the company with more than $156 million in fresh capital as it shifts its focus toward big-budget video game development for international markets.
The company said Thursday that its board approved the sale of 100 percent of Kakao VX shares to IVG, a subsidiary of Kakao Investment, in a transaction valued between $210 million and $250 million.
Before transferring full ownership to IVG, Kakao Games acquired a 34.8 percent stake from financial investors. In return, the investors took part in a $108 million capital increase in Kakao Games.
The maneuver ultimately left Kakao Games with roughly $156 million in proceeds, which it plans to direct toward acquiring and developing large-scale projects designed to compete in the global gaming market.
Kakao VX, best known for its screen golf technology and reservation platforms, flourished during the pandemic, when demand for indoor leisure surged. But growth has slowed in recent years, prompting Kakao Games to shed the business and concentrate on its core operations.
Kakao Games is now seeking to narrow its portfolio while pursuing blockbuster game development, a path many South Korean game publishers are taking.
* This article, published by Economic Daily, was translated by AI and edited by AJP.
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