This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:16 p.m. on Apr. 02, 2026.
Kakao will hand over management control of Kakao Games to a domestic private equity fund (PEF) manager and secure about 250 billion won in cash. The move is seen as part of a "selection and concentration" strategy to shed noncore businesses and shift the focus to artificial intelligence (AI) and platform operations.
According to the investment banking (IB) industry on the 2nd, Kakao recently decided to sell about 22 million existing shares of Kakao Games (about 24% equity) to Petrico Partners. The sale price is around 300 billion won, and the per-share price is expected to be around 13,000 won.
Petrico Partners is a newly established PEF manager founded in 2021 by CEO Shin Dae-hyun, formerly of global IB Goldman Sachs. It emerged early last year as a bidder to acquire control of Kakao Games, and the process gained momentum after securing Japan's Line Yahoo as a limited partner.
Petrico Partners' total investment in Kakao Games is estimated at about 600 billion won. Using the special purpose company (SPC) LAAA Investment, it will proceed with a 240 billion won paid-in capital increase and a 60 billion won convertible bond (CB) acquisition alongside the purchase of Kakao's existing shares.
Line Yahoo is the key investor in the project fund "Petrico No. 6 Private Equity Limited Partnership," which Petrico Partners set up to raise acquisition financing for Kakao Games. In addition, Kakao is said to be reinvesting about 50 billion won in the fund after selling the existing shares.
Analysts say Kakao opted for a strategic sale. To strengthen platform competitiveness centered on AI and KakaoTalk, it can both secure 250 billion won in dry powder and, through the 50 billion won reinvestment, aim for additional gains if Kakao Games' corporate value rises.
Kakao's overall profitability is also expected to improve. Kakao Games posted operating losses for five consecutive quarters last year, making profitability improvement an urgent task. In particular, it also recorded the largest net loss, 195.2 billion won, among Kakao's major subsidiaries last year.
Petrico Partners, together with Line Yahoo, is expected to accelerate improvements in Kakao Games' performance. The immediate plan is to integrate Kakao Games' content into the global messenger "Line." Line Yahoo is also said to have secured the right of first refusal for Kakao Games.
An IB industry official said, "Kakao reduced its financial burden and secured funding for AI investments through the sale of control in Kakao Games," adding, "If Petrico Partners raises more fund capital, the cash Kakao secures could increase further."