Kakao Entertainment, the content subsidiary of South Korean IT giant Kakao, may receive up to 800 billion won ($592 million) in investment from Saudi Arabia, following the Kingdom's Crown Prince's visit to Seoul last week. The Public Investment Fund, is reportedly in discussion with its Singaporean counterpart, GIC Private Limited, about investing in the entertainment firm, according to news reports on Wednesday.
The Korean contents operator seeking a valuation of around 10 to 12 trillion won ($8.4 billion) is hoping to draw 1 trillion won in pre-IPO funds before going public next year. Kakao Entertainment plans to use the proceeds to build up its portfolio through M&As before the public offering. The pre-IPO funding scheme could be delayed to December or early next year due to volatile financial market conditions. Kakao Entertainment has been trying to bolster content in web fiction, comics, visual content production, and music sources through M&As.